So I think there is this point where as an individual or society one can switch contexts easily and readily between apparent contradictions. In this case being naked is not the same as sex. Contrast that with the fetish parades or even some aspects of the pride parades where nakedness is sex. Anyhow, it looks like they are losjng their "innocent" context switching abilities due to “awareness” by media exposure, advertising, tourists, global norms, etc.
Yeah, I wonder to what extent this dovetails with things like sexualization being reduced in American media... but that said I don't think the reduction in sexualization should be dismissed as 'prudery'. For example, air hostesses used to be pretty sexualized in terms of their clothing, advertisements etc, but that's not necessarily a healthy work environment.
Even in otherwise conservative countries (like Italy), sexualization, in media and in society at large, just wasn't a big deal in continental Europe...
You could watch things in national broadcasting that would be off limits for Americans for example. And similarly for movies and books.