I gather that the lesbians weren't censored as much as you might expect, although Buss does discuss a couple of word choices where he more accurately represented the 'probably about a sexual relationship' connotations of the original.

I wonder if he's talking about the fact that a literal translation does not necessarily equal a accurate translation (plus localization decisions)?

Because the same literal words might have different implications/suggest different things in different languages? Yeah, possibly that sort of subtlety.