Limited government, the absence of welfare state programs, and a free market economy place additional burdens upon the general public to conduct themselves in a moral manner. The upright atmosphere of the "repressive" Victorian era was far more the result of cultural injunctions against sloth, promiscuity, drunkenness, etc., and the effects of failure to live morally (poverty, venereal diseases, early death, etc.) than by various blue laws in force at that time. There is a historical parallel between the decline in adherence to traditional, Biblically based morality and the rise of the welfare state. (BTW, this decline started well before the 1960s.)
A society where pornography is as available as hot dogs and motor oil is incapable of sustaining the form of government that our Founding Fathers intended. As in the Roman Empire, central power will increase and liberty decrease as morals grow more debased.