A close friend raised her two kids in a home where erotic sculptures were on display, and sex was openly discussed. She also took her kids to a family oriented nudist resort now and then.

I frequently nannied her kids when she was at work. In all the time I spend with those kids as they were growing up, I saw no evidence that the atmosphere in the home hurt, damaged, or robbed either kid of their childhood. The kids took it all in stride.

When her son got old enough to have a relationship, he entered into a stable long term relationship with a nice girl and successfully practiced birth control in that relationship.

When her daughter got old enough to have a relationship, she chose to remain a virgin until marriage and then she stuck to what she felt was right for her.

Neither kid has any guilt or sexual hang-ups that I know of, and both seem to me to have done what they thought best for themselves. That’s all anecdotal, of course, but it does seem to show that being raised in an environment where both sex and nudity are considered parts of life doesn’t necessarily kill kids.