I remember back when the movie came out how it was condemned by WT. COs, DOs, elders, all ranted against the movie. Other than the profanity, Travolta adjusting himself in his undies, some violence, sex, and drug stuff, it was not "bad". Not nearly as shocking as I was expecting. I was surprised how sad the story was, showing the consequences of the "bad" stuff that happened.
In retrospect, I think WT was crazy to condemn the movie. I thought it had interesting moments of the frustrations of kids and parents. I'd watch it with my kids and let them know that music and dancing can be fun, but there are a lot of dangers out there. I'd want them to know that I'm a better parent than any of the kids in the movie had. I want them to have fun, and more importantly to make good memories, not a bunch of teenage regrets that would ruin the rest of their lives.