Anybody else think it's weird to let a boy play with his "peanut" at 2

Alexa
I have a friend who was at my house the other day. The little boy took his pants off and say in her lap and started pulling on his little peanut. She said go play with your peanut under the covers. I said, " ummmmm....... No ma'am! We do not play with peanuts in this house. You will not be defiling my covers doin such a thing!" She said, " what its natural for a boy to play with his peanut."
Am I the only that feels like that's a little to progressive? He's only 2 years old!