I have no idea what the people who design sex toy packaging are thinking, but I can take a wild guess. There are ten bazillion of these friggin' products released every ten minutes. I suspect the packaging designers are given vast folders of digital clip art bought en masse from porno houses and have, like, fifteen minutes to design each package based on a small selection of templates that don't change much.
I also suspect that the majority of people, when they go to buy a sex toy, are less concerned with the packaging than with the fact that they are buying a sex toy. People in the "alternative" sexuality market are fond of expressing outrage and bewilderment that the adult industry doesn't cater more to the needs of whomever they think the companies aren't catering to, but successful businesses tend to do things based on the bottom line, and if it ain't broke, don't fix it. Therefore, I can only assume that this packaging moves product. I don't like it any better than anyone else does, and I have no idea who's "supposed" to buy it, but they sure buy a lot of it.
Smaller manufacturers and boutique shops are much better about coming up with tasteful packaging (and also tend to offer higher quality product) but having been to so-called "boutiques" all over the country, I can say that most of those smaller shops stock the same tastelessly packaged dildos as the porn shops, though that is starting to change.
Thanks, Thomas, and good luck, Disgusted. Buy American!