I don't think that pictures of breast-feeding babies, even with the breasts exposed/visible, are sexually-explicit at all. It is one of the most natural things in the world, and images of it should also be 'natural' and not 'offensive' or otherwise inappropriate.

We all have personal views on our own breast-feeding practises and comfort levels; like you I wouldn't feel comfortable doing it in public without covering up (but definitely in the privacy of my home and my two special men), however if others do then they should be allowed to do so. (I don't see how posting pictures of it is any different from actually seeing it 'for real' in person... if one is allowed, so should be the other.)

I don't know if this case will help or hurt the whole breast-feeding issue, maybe bring some short-lived publicity to it, exchanges of comments on the news pages (some of which are incredibly ignorant and unsupportive of breast-feeding)...

Interesting story!