This is a huge over-reaction. It's not like the kid is going to get PTSD or anything, if anything this kid's childhood is going to be x10 better after this happened to him. If I was him I'd be shooting mad pee out my nuts in a sex way by the time I turn 10.
So what? Not like he's fucking them. He probably gave consent. This is just an over reaction. Child porn is much, much, much worse. There are tonnes if kids who were exposed to nudity. Like the kid from Wiggle. And besides, stuff like nudity is no longer being censored on youtube. Take Nicki Minaj for example.