Edit: Reading further, it's saying that public topless-ness was common in Japan until the American occupation after WWII, so there's a more recent example as well.
For example, Sayyid Qutb - the grandfather of modern Salafism - became radicalized after visiting US in 1940s, and observing its culture. Here's how he describes it in his writings:
"The American girl is well acquainted with her body's seductive capacity. She knows it lies in the face, and in expressive eyes, and thirsty lips. She knows seductiveness lies in the round breasts, the full buttocks, and in the shapely thighs, sleek legs -- and she shows all this and does not hide it."
"They danced to the tunes of the gramophone, and the dance floor was replete with tapping feet, enticing legs, arms wrapped around waists, lips pressed to lips, and chests pressed to chests. The atmosphere was full of desire."
Going back to the nudity example, have you ever been to a topless beach? As an American who grew up in the religious south, my first trip to a topless beach in Europe was interesting for a bit but then just became normal. There was not any growing 'sexual tension'.
I have friends who are nudists and they say the same thing. It becomes normal quickly, and then it's not even a thing.
It's a bit stronger than that, because not only all successful cultures banned public nudity - also all cultures that tried public nudity failed.
Re: topless beach - going to a topless beach once a while vs living in a society where everybody around you is naked all the time are two different things. Imagine a workplace where your female colleagues (if you're a straight male) are naked. There's a reason why some of the best schools in the world still separate pupils by sex.
I just imagined that - and indeed, you're right that the possibility is quite offensive to my personal taste, and even frankly disquieting. But whereas you might try to explain this as the result of "too much sexual tension", I would instead place the blame on its very opposite. (And the fact that the colleagues might be of the gender I'm occasionally attracted to does not improve things one bit.)