Exotic dancing is considered an art form, even though not everyone might agree. Exposing the flesh in public places may be perfectly acceptable within the Federation, but in the Amarr Empire it's considered a grave sin and a sign of serious deviancy.
from "exotic dancer" object showinfo description.
http://www.eveonline.com/background/potw/default.asp?cid=11-04-07also has a few things. Opening lines mention harlots, hmm. Anyway, later on there is:
"over there is Etu Gassa, whose beauty charmed you so that you ordered she be forced to dance naked in the court square every day at noon, in order that she not selfishly keep her beauty to herself."
Which says nudity in public is a Problem.
There is then the question of what is "Public" ?
E.g. the court, the chapel, the street, those places are public. No nudity there, Or Else!
Places like bars could be "public" or "private", depending on whether or not people can wander in off the street.
Private members clubs, for example, could have an exotic dancer, I think, since it's private.
The Amarr have been a religion for something like 15,000 years, so a lot of things are prohibited in public, but fine in private, because of the pragmatic approach. Can't repress things like that for 15,000 years, surely?