You would enjoy rural Uganda then (and, I presume, other similar areas). It's a little uncomfortable being watched by 15 kids when called by nature. Some of them have never seen a mzungu go to the toilet, I guess.
The hand-washing bit is a problem, though. You'll notice that no-one eats using their left hand in such areas. :-O
I don't know how to take this (joke, irony or genuine) but that's a good example of thinking outside the box vs focusing too much on the apparent cause of the problem. Designing the restroom so that there's a corner obscuring the view solves all problems.
but without a door, you can't guarentee that the stall is private, and anyone could just walk in while you do your business - a rather unpleasant thought.
I think they're talking about the big room containing all the stalls, not the individual stalls themselves.
The two most recently built public toilets I regularly visit (a cinema and a shopping mall) both use this design, so I think it's the future.