i dont foist nudity upon my children but they do still see me naked, if i am in the shower for example my 12yrold will sometimes still come into the bathroom and chat to me, we dont have a lock on the bathroom door, if you want privacy you shut the door and then others will knock, well the little ones are so good at remembering this! and if i am naked or changing a tampon i may say i am busy can you wait, the little ones will want in the older ones will respect that and wait a few mins, but they have barged in from time to time and they either stay and chat if thats what they want or they go and wait for me to be finished.
equally they know if they want privacy they can shut the doora nd ds1 now 12 sometimes does, othertimes if he is showering he just pulls the curtain right across, or wraps a towel round himself once he is out. its def a gradual process and we go along with what they are comfortable with.
and yes you can cuddle a child to comfort them which i do but at times a bfeed was needed to comfort them even at almost 4, its just another parenting tool not always needed but at times was of great use. one is not better than the other, they are just different and some children need one more than another, they all generally grow out of it, bfeeding at least, hopefully they never grow out of cuddles, tho they may not like cuddling in public at times! 