Let's face it, all this comes because some "bored" people have put their hands on their heads when they saw that there is nudism in Second Life and that they also let the avatars of children (but they are adults) to go on those beaches.
In some countries and especially in the United States of America is usually seen as an offense and as if it were a sexual act to go naked or to see a naked child (without any sexual qualification) I remember that we were all born naked without a "modesty layer" but considering that it is the country where some consider the sculpture of David de Michelangelo an obscenity, I do not expect much, but Linden Lab is in California, they should know better how it all goes.
While I agree that some things need to change, criminalizing the entire SL Kids community (where there are more good people than bad) is a bad idea, Linden Lab should have created a commission where the Kids community could say what they think, what is good and what is bad and help to create a guide of what is acceptable and what is not, not criminalize nudism just because, without explanations, just for the reactions of some fanatics, when the real problem and what worries Linden lab is another, the a-play that include sex, that needs end , but with fair and real rules, that penalize those people and not the rest.
In my opinion, they have done it very badly and out of fear, I understand it, they want to protect their asses, but they should put the modesty layer there before making nonsense rules.