I would prefer to know when and where this was going on, or just how demeaning it had become. The fact that there is a ruling tells us this is going on under our very noses; and one can't shut the stable door once the horse is bolted!
There is however, always a point where healthy normality, morphs into unhealthy deviance? I believe it is the unhealthy deviance, that ought to concern all of us? Not healthy normality!
Moreover, one is old enough to remember, when bikinis and their predecessors, two piece play suits, were considered both shocking and immoral! And, in some cultures, this is still so! And an uncovered ankle is a green light for uninvited sexual attack in some of those cultures!
Other cultures invariably wander about topless, without ever once inviting unwelcome attention. We really do need to stop obsessing over or regarding any part of an exposed naked body as immoral or unnatural.
If we were exposed to more of it during our formative years, we wouldn't get all hot and bothered by it in our adulthood!
And indeed, wouldn't spend so much of our time trying to catch "illicit" glimpses of it, or becoming excited as adults, when we do so!
When people have unlimited access to the net, and one can't watch everyone and all activity, it may be better to allow some normal healthy activity, without ever putting an official seal of approval on any of it.
After all, time is money and the bosses' time is paid time, and ought to result in productive endeavor.
However, if good staff never ever clock watch and invariably give more than they are paid for! Then one can and should turn a bit of a blind eye to harmless adult activity, particularly during meal breaks or at slack times.
Not for nothing is it writ large, all work and no play makes jack a dull boy.
Rhrosty.

The issue of porn is a red herring:

What this Australia Post employee did was using his employer's mail system for private purposes without authorisation - which is a form of theft.

The contents of that mail was neither work-related nor authorised by the employer - it would make no difference if it contained photographs of flowers and butterflies. An employer has every reason to sack an employee who was stealing from them.

Now that Abbott is our Prime Minister I expect that pawn in the workplace will become very common.

As people are unemployed or lose their wages and conditions, they will bring items from their homes and pawn them to their mates. Whether that will involve pawning the wife and children remains to be seen.

If people want to get a better return on any pawn transaction, I suggest that targeting heavily pregnant women who are earning $150 thousand per annum could be a goer!