It occurs to me that perhaps the thing that people object to most about the film (and there were a lot of people who were disgusted by it, upon its release) is the apparent lack of any kind of moral compass. It is not necessarily the fact that the majority of characters are shown to be selfish, irresponsible and anti-social (and the only girl who isn't ends up being raped and contracting HIV after a single sexual encounter) that disturbs people, it's the fact that there seem to be relatively few consequences from their actions. There is a noticable lack of any kind of adult involvement in the film, unless you count the mother who breastfeeds and smokes simultaneously, in front of her teenage son's friend, or the taxi driver whose interest in the afore-mentioned HIV-infected girl makes the viewer feel a little uncomfortable.
Although in principle it seems likely that the film will act as a wake-up call for parents or wayward teenagers, or both, I think that sadly the people who could benefit most from a wake-up call are the people who are least likely to watch it (such as indifferent adults like the ones portrayed in the film). However, I can also see that it could be informative to people who are perhaps a little naive and are thinking about getting involved in areas such as those depicted in Kids. For young girls especially, I think it might be beneficial for them to take note of the storyline about the character whose mission in life is to deflower as many virgins as possible, usually succeeding by reciting a well-rehearsed speech which tells them everything they want to hear.
http://www.bbc.co.uk/films/2001/01/30/kids_1995_dvd_review.shtml
http://www.thefilmjournal.com/issue8/larryclark.html
However, clearly not everyone feels embarrassed by the subject as there are regular masturbation marathons, mainly held in America (I read that the current world record is 9 hours 58 minutes): 
