I don't see the problem with the concept of the camp, though I do see the point the negative side makes.
Here's how I see it:
If you're going to run a camp like that, EXTENSIVE background checks are a must, and I hope are going on, for staff and personnel.
Enough staff should be on hand to make sure that kids aren't doing anything.
The way I see it, if you have quality counselors, and enough staff, things should be fine...and I do see the point made by the counselor about kids having gone to the camp not getting pregnant in high school...society really does put taboos on nudity and sex, and that makes it all the more attractive to teens who want to "rebel" I think.