There are amusing reactions aplenty in Julie Scelfo's NY Times article about how, when, where, and if kids could or should be nude.
I think I'm pretty laid back about the naked kids thing--K2 strips down far more than her sister ever did at that age. But I kind of do think that a 6-yo running around an away playdate naked, and taking a whiz on the lawn, does cross a few lines, even if they're just of politeness.
Children without Clothes | When Do They Need a Fig Leaf? [nyt]
I believe that it's irrational fear of pedophilia that is the source of much of this, but people rationalize it by saying it's a manners issue. Interesting article.
Finally found the image I was looking for, from a less paranoid age: Shirley Temple from the movie Captain January. Hula outfit with no top.
I sure hope this form takes HTML.