I would say it is more respect for the artist - it would be better to not exhibit it at all.And what about respect for the artist's intention (ok, I know that this is the subject of another thread).
But covering it is not good for the museum. The controversy generated would inject a lot of cash in the museum coffers. I would fire the curator and museum director for not generating the required controversy and therefore the traffic, memberships and so on! :rolleyes:
I think THIS is the incident.