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These sites have rules for nudity and there are probably good reasons why.
Have to cover their butts from being attacked by the protectors of tiny tots everywhere.
Some of the protectors actually care but a lot are in for the glory and fame.

I do not understand what you are trying to tell here. Maybe caused by lack of lingual knowledge?
Protectors of tiny tots? What is that? Is it some slang?

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Again if you do not want to see nude people, why should put up with it?

Why not make a simple system where people click in their profile "I dont want to se ANY nudity at all"? And when artists upload a picture and a thumbnail, AND tag the upload nudity.
The upload SIMPLY dont show to those who has tagged their profile with the "I dont want to see ANY nudity at all" tag?

Why not make it simple? The excisting low-IQ censorship system makes fools of people.
Especially the thumbnail. They are so small that noone can see any details on them anyway.

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Why should people be nude or half nude to sell non sex related items?

Art is about expressing emotions, impressions or feelings.
It has nothing to do with selling things, money or sex.
Nude people and Sex isn't necessarily related. Except for those with a twisted mind.
Nudity has been used in beautiful artwork all over the world for centuries. > Quote -

Is it really prudery or are people tired of companies using sex to sell items?

Now THAT would be a place to start for american censorship wouldn't it? > Quote -

Is it such a great and wonderous thing to see someone use naked or half naked folks to sell assorted items?

What im talking about here is art. Not merchantship of the commercial world.
Because there are a half naked woman in a male-underwear commercial never made me buy the stuff. But truely enough many men have their brain below the belt. If you are a man, nude women are beautiful... if you are a woman.. nude men are beautiful
If you are gay(which can be legally married in Denmark) there can be some sort of mix of what you find beautiful.

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Big whoop that some countries use nude people to sell stuff, its not "pushing the envelope", its getting the buck or Euro or Yen. At the end of the day you will want to skip past it to watch the real content.

Well.. once again. im talking about expressing artistic impressions. Not the nudity in commercials. > Quote -

What are the roots of the prudery?
Is it Satan (lol) or Religion?
How do we fix this problem?
Is it even fixable?

It's been said that a prude is someone who's never got over the shame of having been born between thethighs of a naked woman :)

Well as for religion i can only speak from a danish point view.  Religion is secondary in Denmark. Freedom of speech comes above it all. Fixable.. yes the day people start to see and accept themselves as they really are.
And stop seeing themselves like they THINK their neighbours want them to be seen.

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Aside:
When someone mentions "Free speech". I want to laugh a lot.
Do you want to say anything you wish or only the stuff that makes sense?
I bet that "Free speech" has limits in a civil society.

Yeah we can laugh of it all haha. Laughter is healthy :)
Well in Denmark we are, by law protection, allowed to say what we think. And it has been that way for more than 150 years. I would call that freedom of speech. The danish prime-minister Anders Fogh Rasmussen is a foolish puppy running after Bush.
If i want to, i can write that in the news papers and say it on television, I can even make a render of both of them and publish it on my website without any studpid censorship interferes. And if i wanted to, it could be a nude render. No problem there.

In america i heard.. people are afraid of politicians.
In Europe its the other way around. Politicians are afraid of the people. Because they are free to say what they really think.

Best Regards
Lars Juliussen
Denmark