Several points:
1) If you are so NOT ok with bombing the crap out of half the world then how come so many of the same people screaming about JJ's breast are the bible belt 'christians' supporting the Iraq war and unregulated gun ownership?
2) Yes it is puritanical. It's a breast, get over it! These little kids that people are so indignant about seeing a breast (and not even any nipple) would have been breast feeding a couple of years ago. They would not find anything odd about seeing naked flesh if it were not for the uptight holier than though attitude of the tub thumpers.
3) keeping kids as kids, do you explain to your kids about death or do they believe that grandma is hiding under the gooseberry bush until they are older?
It's all about getting some sort of scale on life. The puritanical repressive attitude of the holier than though crowd is not only hypocritical - your main exports are violence and good porn, it is also damaging. You have much higher per capita figures for child abuse than more liberal European states. So if you REALLY want to keep kids as kids, rather than just getting all hot under the collar about BEING SEEN to be keeping kids as kids then you would engage in some realism and see how rediculous this whole episode is.