Do you think we live in too much of a PC age to have a scene like this (as it appeared in the movie) in a film which converted into today's rating standards would be PG-13?

Basically Indy shoots down a guy who is just showing off. He isn't being attacked just yet. His life isn't being truly threatened. It is a scenario that doesn't seem to play well with the current attitudes of what is acceptable.

It is for this very reason that Lucas (in spite of whatever he retconned in as his justification) digitally defiled Star Wars and made Greedo shoot first.