Personally I feel like the mods are being overly cautious almost to the point of ridiculousness. The pictures in question were taken in a public place where Taylor had no reasonable expectation of privacy and I think its safe to assume they were not taken with the intent to display him in a sexualized manner. If that was the intent then they could be considered child porn but as it seems, they were taken and just so happened to capture a bulge.
Having said that, it is still the prerogative of the site to set the rules governing what can and can't be posted and we as members have no choice but to respect that and abide by the rules. Or otherwise start our own site.