After much careful research, I present the canonical, unexpurgated text of 'term-nasty.el'.

It is a short file from the section of the Gnu Emacs sources dealing with the handling of various different terminals. It was created to house some profane comments originally residing in a file called terminal.el which were removed by rms, as can be seen in the original text comments below.
However, later on this file was removed from the source tree entirely due to the Communications Decency Act (CDA), and a note saying "This file censored by the CDA" was added to the terminal.el comments.
;;; term-nasty.el --- Damned Things from terminfo.el
;;; This file is in the public domain, and was written by Stallman and Mlynarik

;;; Commentary:

;; Some people used to be bothered by the following comments that were
;; found in terminal.el.  We decided they were distracting, and that it
;; was better not to have them there.  On the other hand, we didn't want
;; to appear to be giving in to the pressure to censor obscenity that
;; currently threatens freedom of speech and of the press in the US.
;; So we decided to put the comments here.

;;; Code:

These comments were removed from te-losing-unix.
  ;(what lossage)
  ;(message "fucking-unix: %d" char)

This was before te-process-output.
;; fucking unix has -such- braindamaged lack of tty control...

And about the need to handle output characters such as C-m, C-g, C-h
and C-i even though the termcap doesn't say they may be used:
;fuck me harder
;again and again!

;;; term-nasty.el ends here