I'm a little surprised about this, because it seems to end enforcement of Section 5 of the Public Order Act against nudity. That's the part which forbids conduct "likely to cause alarm and distress" even if it's not intentional.
What they are saying is that just being naked is not behavior that is, "likely to cause alarm or distress," as lawmakers enacted the law. The legislative body did NOT just say that being naked is illegal. It has to be naked PLUS additional overt behavior "likely to cause alarm or distress." The law making body did not go into detail specifying what additional behavior they meant, but they clearly intended something more than just being naked. The Public Orders Atc, Section 5, talks about "uses threatening [or abusive] words or behaviour,..." Going about your normal business (while naked) is not overly threatening or abusing someone else. The Public Order Act was obviously stretched beyond its reasonable limits to pretend that minding your own business while naked is deliberately causing a disturbance.
The police, prosecutors, and courts may have gotten it wrong with Steve Gough (did get it wrong in my opinion), but the publicity he created is probably a big part of why they are trying to get it right now.
Hooray for the UK Police and prosecutors. Hooray for BN. They all got it right.
My guess is that there will be a lot more naked people wandering about in England and Wales from now on.
Bob