Without knowing the full context behind the Cognitive Shiho confrontation, it's tough to really put my opinion on it. My initial reaction is: it's fine. As far as I know, within the context of the game, this is another fucked up projection conjured by the villain of this arc to screw with the cast. Its got the subtlety of a sledgehammer to the face, and of course from the outside looking in its going to look awful but if the game presents it properly (IE makes it clear this portrayal of someone in this situation is NOT okay) then I have no problem with including controversial things like this. It's tasteless, it's disturbing and it does a good job of making me hate Kamoshida even more.
With that said, I'd hate for it to be included for mere shock value, which I fear it is. I don't think the writers are trying to say anything other than "Kamoshida is a massive cunt" and the arguments there that we didn't need this inclusion. Kamoshidas arc is already the strongest arc tonally in the game. So I guess my final thoughts on it are: I understand (with my limited knowledge of the context of the scene) what it's aiming for, but I don't think it's needed and it's too heavy-handed. If this is what the new Persona writers are going to be like then oh boy.
Now I'm hovering over the post button. I think I've presented my point of view clearly, but there's always that hesitation when dealing with subjects like this. I want to be clear that I'm trying to understand it from within the games point of view, not from the outside looking in, because I always think context is the most important thing when it comes to things like this.