>Call me crazy, but are there any studies that show exposure to genitalia during childhood leads to psychological damage of any kind?

That is a brilliant question, we could actually find out: substantially every danish school kid has showed in communal showers after gym class. This, I think, is not nearly as common in the US.

If exposure to genitalia caused psychological damage then we should see a greater incident of this in Danes than Americans. My hunch is that such a difference, if found at all, would not pass statistical significance.