My youngest son just turned 2 and really likes his penis. At this point...he's two...it's just another body part that he's learning about. When we are at home, and he's in the bath or getting dressed, if he feels the need to explore I have no problem with that. When or if it gets to the point where he's a little older and "exploring" himself, then I will explain that is a special body part that is private, and we don't explore when others are around. I don't want him to feel like it's something to be shameful about, and yet, I also don't want a future horn ball who feels like he needs to touch and play all the time, so I think finding a balance and teaching about modesty and restraint at some point is important. But for now, meh.
I'm having an issue right now...I don't know how to handle it exactly... *sigh* A few months ago, I was changing his diaper in the middle of the night, and well...you know when boys sleep, their "thing" gets "big". Well, while I was trying to latch his diaper, my latching the diaper was causing some discomfort and I said, half sleeping...I'm sorry hunny, it's big right now, we just have to wait a few minutes and you'll be more comfortable. So...a few days later, I was changing his diaper and he grabbed himself and said..."big penis"....yeah, well my hubs thought it was funny, me, not quite as much. I'm just waiting for the day I'm changing him in a public place and he starts talking about his "big penis".