I dunno, I can see not having such things in public areas. At least in museums and art galleries you are not forced to see it. But I also think it's over reaction (the old puritan influences never seem to go away in the states). It is funny that violence is perfectly acceptable, yet sex and love are not.
But I can remember a rather controversial work of art set outside a bank or something back when I lived in Montreal. It was a 2D cutout sculpture, metal, painted like a 5 year old would paint, featuring naked girls and boys (adult as they did have 'hair' down there) with genitalia that were similarly drawn. Females had the usual hairy clam thing, and the males were erect. It managed to stay that way for quite a while, but the owners eventually censored it by attached flowers matching the art style over the genitals. No clue if they were forced to though or they were sick of the complaints.
This was in Montreal which I would say is one of the most sexually liberated cities in North America.
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