I have a feeling that the sort of "psychological damage" they're worrying about is precisely the fact that "exposure to genitalia" makes kids more likely to violate the social taboo and show their own genitalia, and that makes the anti-pedophile groups (and others of prudish nature) horrified.
The reason that kids are building dongs is because they know it's a taboo. If the reaction of others upon seeing it was not shock but a mere "Oh, a penis. So what?", I doubt they would be doing it.
She/He never said it was. It is being suggested that, er, enthusiastic anti pedophile groups think that. I think that its implied that its a dubious argument at best. None of us can answer for the flawed logic of campaigners with tunnel vision.
Funny thing us that I bet the kids probably wouldn't really comprehend what they were seeing in most Lego-dong cases. I remember walking past some fairly prominent "8===D" style graffitti each day in my school when I was a kid (I was <10yrs) and thinking it was someone's hasty attempt at a "flipping the bird" gesture :D
>The reason that kids are building dongs is because they know it's a taboo. If the reaction of others upon seeing it was not shock but a mere "Oh, a penis. So what?", I doubt they would be doing it. //
To posit an alternate hypothesis children find squirting water innately amusing; hence the whole activity of urinating, particularly with the apparent extra control a boy has over direction, is a point of fascination and so too the organ of this action. Beyond that children realise the differences between themselves and others. A primary difference that is noticeable between boys and girls is genitalia and so they become more fascinating still.
One thing that tends away from your perspective is the apparent Roman fascination with dicks [eg the Greek's Priapus / Roman Mutinus; the fascinus (from which our word fascinate comes)] in a comparatively sexually liberal society.
I guess data from anthropological studies would help to flesh this out; are children brought up in societies where genitals are often displayed less fascinated with them?
A further thought:
>'But the penis grants man "immortality." [...] It is the perpetuator of human existence.' (A Mind of Its Own: A Cultural History of the Penis, by David M. Friedman, p.70)
The reason that kids are building dongs is because they know it's a taboo. If the reaction of others upon seeing it was not shock but a mere "Oh, a penis. So what?", I doubt they would be doing it.