I usually take "NSFW" to mean, Thing you might be embarrassed for other people whom you may not know well to see you looking at without context, not necessarily that it's going to result in severe consequences or trauma. I'm sure there are companies where an image like this would warrant an overreaction, and I agree with you on the absurdity of that, but I think the less hyperbolic meaning above is more common.
that's a fair point. i just take issue with diluting the meaning of a term by using it for things that are just mildly inappropriate vs things that are actually harmful or hurtful. it all just contributes to an environment of fear. i prefer that these terms be reserved for things that actually warrant a strong reaction.