I think it's quite fun in a cheeky way! I'd wear it (I love Swatch watches anyway) and I don't think that, unless you actually pointed it out (and had a magnifying glass to a real-life scale watch strap) you'd really see what's there?
I have to admit that the first time I thought I'd clicked on the wrong image in close up because I could see the issue - it was only after reading a few more comments, and looking again, that I saw what was there in cartoon form (and I'm 'old', with more than enough life experience to know what looks likes what!).
So, no, I don't think - unless you really drew attention to it, it would be noticed much in real life by anyone who wasn't already aware of 'what's what'. And, even if they did, there's a difference between knowing it's 'ok to be ok' about female/male body parts, and being horrified that someone is using them to titilate. These don't look at all like they're being used to titilate at all.
Blimey, some of you need to read 'How Mummy Laid an Egg', and then you might get your knickers in a twist (it's by Dame Babette Cole, and aimed at primary school children, and yes - it's all about how babies are made... and there's a lot more in that book than there is on this watch strap!)