"Would that cause this type of extortion to "poof"?"
Yes.
Because people are naked and see sex as a normal function doesn't change the way a human society organises itself for cooperative good. They will probably still have taboos.
Anthropologist Bronislaw Malinowski made a study of the people of North-Western Melanesia from 1915 to 1918. The people treated sex as a normal function - even to the extent of children engaging with each other in play.
He tried to educate the people about how pregnancy happened. The chief insisted that pregnancy only occurred after a couple were formally married. Malinowski had to admit that in the village the evidence did support the chief's version.
They did have taboos. A man was not allowed to speak to his mother-in-law - if he did he was likely to commit suicide for breaking that rule.
Another anthropologist visited an Amazon tribe. Arriving unexpectedly she encountered a naked man - who quickly ran into a hut. He then returned to greet her formally - now wearing the decoration of a thin band round his waist which signified his status as the chief. Otherwise he was still totally naked. Clothes are always an indicator of status in a particular culture - and often that is their primary purpose. Body decoration or scarification also serves the same purpose.
Within living memory the Nuba in Africa were renowned for their nudity and public courtship rituals. Their region was eventually absorbed by a Muslim country - and they were forced to adopt fully covering clothes and abandon their tradition. Christian missionaries did the same wherever they went in the world.
https://kwekudee-tripdownmemorylane.blogspot.com/2013/08/nuba-people-africas-ancient-people-of.html