As bad as paedophilia is, and in no way do I support it, it's a horrible thing that can really scar a child, these kids were stupid enough to do it. It's not like he went up to a 5 year old and said "I have candy in my van, won't you come have some?", he went to a bunch of teenagers and said "Here is something most people don't want to do. To be in my clan, you must do it. Of course, you can choose better clans with better players that don't force you to do anything to join BUT if you join MY clan, you can... Well, do the same thing. But you have to show me your penis to do it." Yep, that sounds like a good option! My guess is that the kids thought this was stupid but hilarious and most likely made fun of the guy. But if that's not why, I honestly have no idea.
I definitely agree that parents should monitor their kids' games and such. My mother did it, she plays games too so she knows I do it for fun, and I'm all the better for it. I don't think that it's entirely their fault but is it not better to spend an hour watching your kids play and see how they act with it? Calling people names and stuff for example. Maybe the parents could teach them good sportsmanship. Not just "games make you evil" or whatever crap they spout. Stop being so paranoid, stop hating entertainment and watch what your kids do. The earlier the better, that way you can still mould their behaviour like you're actually meant to.
Parents of gamers really have to relax. It's not the game's fault if your kids do bad things, if they're influenced by something like that then they shouldn't be playing it in the first place but the same thing can be said about TV or even books. Why doesn't anyone say "Oooh, Agatha Christie made my son kill people!". Why is it only games? It's way too biased. Bad things have been happening for years, playing a violent video game doesn't make you any more violent as watching a violent movie does. Grow some logic, people.