I can see where you're coming from. I don't have a problem with nudity, especially kids and in their own home. I know it's on the front lawn but unless you're on a main road it shouldn't be a problem with respect to "public nuidty". Regardless, I can understand the concern, not so much with how you feel about seeing it but worrying who else might be watching. I know there's not a pedophile on every street but it's one of those scenarios that just seems to be inviting trouble. If it were a movie it would be the first attack scene of "When Pedophiles Attack!".
EDIT: Why is it so hard to not sound like a pedo in this thread!