I don't imagine that this story is getting a lot of traction out of Australia but it's all over the news here.
A respected photographer whose work is exhibited in the national gallery, amongst others, has had photographs confiscated because they are of nude 12-13 year olds. Police are considering what charges to lay.

There are a gazillion links I could send you to here, the one I'm finding most interesting is from the blog 'lavartus prodeo' - which is a nominally left of center blog with several marginally notable contributers.

http://larvatusprodeo.net/2008/05/22/this-is-not-art/

On a related note is this story published today about potentially banning naked babies from nappy ad, for example.

http://www.news.com.au/dailytelegrap...005941,00.html

I'd like to add my personal opinion here but have been called away from the computer and feel it's something I can't express quickly or glibly, so I'll try and get back later.