re:Does this sort of "art" sponsorship only happen in the UK?

I should say not! we NYer's are as 'cultured' as our cousins across the pond.. i remember the show a few years ago, at the Whitney, "Chewed Lard" the exhibt had a 3 foot cube of lard, (well not quite 3 foot cube,) and next to it, a pile of "chewed lard" -lard that had been masticated and spit out..

some of the lard was form into 'art objects' (like a woman's lipstick.)

and two years ago, Rudy decided to take on US constitution, over an art exhibit.. this one featured pictures of a modonna, with aspect of christian symbolism, that had been further decorated by cow manure. (rudy took offence on behave of all NY's- the exhibit was at a museum that recieves public money/Brooklyn Museum)

and really as bad as these 'art' exhibits were, i have traveled, and some of what passes for art in small museums in rural/remote part of the country are worse.. even if they are more tasteful. it not as if you can't have good art in nebraska, (car henge proves it) but in general, you don't.