Our changing village is in rows, and you can see down the rows from the pool, though not into the cubicles, as that view is blocked by the shower blocks which are at the end of each row, poolside.
If anyone was naked outside of cubicles or looking under cubicles, they'd probably be seen by a swimmer and/or lifeguard. (It's not all good. Sometimes you're swimming and bring your head up to breathe... in a lung-full of Lynx or similar spray.)
I've been to other pools with changing villages, and there's no visibility from the pool at all, so you could probably do more illicit things unwitnessed. So it's not just about changing villages per se, but the overall design.