Take away the rainbow fur and what are you left with? A unknown man walking around encouraging children to touch his plastic dildo. Wrong. As a parent if your first instinct isn't "get the fuck away from my kid" then you need to have a good, hard look at yourself and your priorities.
What also really pisses me off is the picture of them next to the Muslim families with women in burkhas. Its not my religion, and I know that there is an element of control/sexism etc, but modesty is important to those ladies and this totally disrespects that.
Now, I'm going to share a personal experience to explain why this is problematic from a safeguarding perspective for people who might think that this is art, that it's ok, that genitals aren't the problem.
TRIGGER WARNING BELOW
I was repeatedly abused by a relative who is peadophile as a child of 4 or 5, and one of the things that happened was that he had a BBQ apron with a print of a bare chest with a printed apron on, and it had a sewn on fake penis underneath it. First the peado made me hold the fabric penis whilst my mum and dad laughed and once I was used to that he got me alone and switched it for his actual penis.
Now, it was already funny when i held his fabric penis, so following that lead it felt like it should be "okay" to touch his real penis. I didn't feel like I could talk to my parents because they had laughed at my discomfort earlier and encouraged my boundaries to be crossed.
That erosion of safety leads to something called complex PTSD, its like what soldiers get but rather than recreating wartime violence sex abuse CPTSD sufferers recreated the horror of being abused, the helplessness, the disgust and fear by someone who is meant to protect them. It destroys lives.
I might email that to the libraries involved, actually.