Children and sexuality is a major issue in our culture. We all know the joke about kids asking their parents where babies come and the awkwardness that follows. I also remember the whole scandal of hugging at school and the debate over whether it should be allowed or not. Here's an article from the New York Times about banning hugging, it's a bit old but it serves its purpose.
In this clip, the the wife of the town's reverend asks in outrage if anyone will think of the children. I forget what this is in reference to, but really it doesn't matter. I believe her comment is supposed to be random and out of context and the ridiculousness of her exclamation highlights the extreme to which concern over children has reached.