In Exile, the isle of Eleusis does indeed feature many nude people. Eleusis is based on a tropical island from history which was exceptionally hot, so people didn't usually wear clothing (it wasn't necessary) and when they did, it was very light clothing (light robes, etc). Both Exile and Exile II had locations based on actual locations of the world (Exile II was more obvious in this respect). But there are no "perverted" comments in the English version of the game (I wouldn't know about the Japanese version since I don't know a whole lot of Japanese, plus I don't even have the Japanese version). Yes, they're naked, but calling them "raunchy" is downright mean.
That would be like me calling everyone who showers "raunchy" because you're naked when you do it.
I don't understand why today's society has such a problem with people being nude...
Ya, that comment about the spear is from Cosmic Fantasy 2, and it's right in the beginning of the game before Van goes to the tree.