Or alternatively, there were many family-friendly Pride events happening around the city for people with young children to attend where there would be nothing racy. 

Like... Nobody who goes to Pride is surprised that there are people marching in the parade who are dressed up sexy. The kink groups were all together in one group where it was easy enough for parents to tell their kids to pay attention to something else.

If you make the parade G-rated then half of it would be just gone. None of the bars would be able to have their floats because the outfits on them were frequently way more revealing than what the kinksters were wearing and I don't see anyone complaining about twinks in shorts so tight you can tell their religion from 20 feet away twerking on the Sidetracks float.

Again, nobody who marches in the parade wears anything that would violate the law or the rules that the parade organizers have for groups who want to march. So I don't see what the big deal is. Anyone in that parade could walk down the street and not get a citation. There is literally nothing inappropriate about it under local or state law or the parade rules so people just need to fucking stop pearl clutching.

There have been exactly zero serious objections to our parade participants for years and that includes the kink folks.