This sort of attitude is a really scary thing -- the west seems on the brink of losing all of its values. How on earth am I going to make sure that my 5 year old doesn't end up this way?
Frequent trips to the third world. Let your child not be so coddled that he/she thinks the greatest misfortune that can befall a person is seeing an offensive costume.
Actually, we already live in the third world :) (Thailand), but the attitude exists here too. When university professors suggested that there should be less censorship the university students rose up against them.