In my opinion everyone involved exploited a naked baby. Was it child porn, maybe maybe not, the fact that it was never pulled suggests that, at the time, it was not considered child porn but it was making money off a naked baby that had no choice.
If the parents sold that same photo after the child was 18 it would have never flown without his permission.
I have no idea how it should be handled today but he has a right to handle it however he wants. It played out in court and he lost. Maybe parents should not be allowed to exploit their own kids for fun or profit.
It might be helpful to not refer to him as penis baby.