For some reason it disproportionately irks me how much this tag gets misused. Probably because it has such a clear stated definition: "*Regardless of what its literal meaning is,* the actual use of the tag indicates that there is nudity."
Emphasis mine. Do people not know what "nudity" means? I see this ALL the time tagged to things that would qualify for a PG-13 rating in a movie, at worst. This isn't supposed to be a tag that gets applied based on your personal feelings about the work, it has an empirical use.
IMO "implied" nudity, or naked characters where their various bits are concealed by strategically positioned limbs/hair etc., or censored nudity where the artist just omits drawing parts that should otherwise be visible (e.g. nipples) should not qualify for this tag either. But I'm not even talking about that kind of gray area. I mean stuff where everyone's fully clothed and no naked boobs, butts, or genitals are visible getting the NSFW tag.
A tag is only useful if it's applied consistently and correctly.