I took my 2 year old to Burningman last year (she turned 3 on Friday, 9/1 and was on the stage in Center Camp for the Kidsville presentation when all of the Burners watching sang "Happy Birthday to You!" to her) She LOVED Burningman. The day of her birthday I asked her "Would you like to go to Disneyland for your Birthday when we get home? (we live close by so have an Annual Pass). She emphatically said "NO-I want to go to Burningman!"
When we were all packed up and leaving, she was crying "But I don't want to leave! I want to stay here forever!"
It was incredible to see BRC through a child's eyes. She got to see a marvelous world composed completely of art and people's incredible creativity. She got to see a society of people who genuinely loved and cared for each other, who were not afraid of the strangers around them, and who hugged "Hello" instead of just nodding at each other like out here in the default world. She got to experience generosity from people we didn't know that we didn't have to pay for-a rare thing in today's world-a gift while standing in line for ice-a lovely little blinky light fan and a glowing batman necklace given to her on the night of the Burn by a nice guy passing by, a ride on that marvelous Carousel at the end of 5:30 on the Esplanade, a chance to slide down the pole on a prate ship art car and to ride on an amazing swing near Center Camp, the chance to ride on some of the art on the Esplanade and run circles around the man in that observation tower they had around him. An Art Car (thanks Kelly!) came by twice to take us out to the art on the edge of the city, a steam locomotive came by every day to bring the kids snowcones, and some great people in Kidsville brought trampolines so she could wear a fluffy skirt and bounce to her heart's content. There was also a sock puppet camp, a Pirate Story hour, and nightly "Drive In Movies" for the kids. At Center Camp "Captain Bubbles" did balloon animals and flowers for the kids and let them ride around on his amazing mini art cart.
I think it is important for our children to see the world in all it's diversity- I don't want her to grow up thinking our little slice of Suburbia is the only way to live. As for the nudity, I think there are more problems in cultures that try to cover up and hide the human body and sexuality (I have seen statistics that sexual assault cases are far higher in Muslim cultures, where the human body is covered from top to bottom, whereas the Scandinavian countries which are very relaxed about nudity in public have the lowest rates of sexual crimes).
We did not see any "public sex acts" but I have not seen them my other 2 years at Burningman so was not freaking out about them. If she had seen something I am sure it would not "scar her for life"....isn't most of the world made up of "Third World Countries" where whole families sleep in the same room? We have quite a few neighborhoods in our farming area down here with large families (17-23 people I've heard) all occupying a 1 bedroom apt. If a family has 9 kids, I imagine at least 1-8 of those kids have seen sex and it has not scarred them for life. I think trying to make it a secretive and taboo thing leads to pornography and sex problems and issues. So, that is not something I would freak out about or ask people to modify for my child's sake at Burningman!
On the other hand, I did not run into any of it, as I was not out running around the city looking for Jiffy Lube or The Temple of Atonement or someplace that is a little more alternative. I think you find what you are seeking in BRC-and we found kid friendly entertainment.