This is typical of most of America. In Europe you do not find this. However, here in NYC, in Coney Island, most of the Russian/Russian Jewish population wear the best bathing suits. Many of the older men wear speedos or things that they consider swimwear. It doesn't always look good (some of the women wear very revealing suits and they are 300lbs). Its refreshing for myself, a typical American, to sunbathe among them and not feel uncomfortable wearing a speedo, and having my package show.
I do think there is a difference at a public kiddie pool, but historically lifeguards have worn orange speedos and some degree of package can be seen.
Its why I prefer nude beaches and Europe. We need to get over our discomfort with the human body.
We judge people instantly, as opposed to really just living!