This appears to be a story depicting a sort-of utopian future (of limited extent - an island) where there are no rules.
I'm not sure from the context whether the author is in favor or against the concept. It somehow feels like he is knitting together several uncomfortable consequences of "no rules" in an attempt to paint that future as dystopian.
The thing people always miss, the important overlooked point, is that no one wants a state where there are no rules. What people invariably want is a state which has rules enforcing human rights, and little else.
The most basic human right is to have sovereignty over ones own body. Mat Honan's article shows us that with no rules, outsiders would be able to do anything they wanted to us - even against our consent. It would be the strong doing whatever they wanted to the weak. Typical, obvious, and predictable - we have many examples of lawless societies where the strong do just that.
Many of our rules are violations of that first most basic right, pretty much anything that someone else thinks that you should do or not-do for your own good: rules about drugs, prostitution, abortion, doctor-assisted suicide, and yes, wearing clothes. We could do away with large swaths of the legal landscape and eliminate large parts of government, both local and federal, if we could just say "do anything you want, so long as you don't infringe on the rights of others".
If you would like to read about a rule-less society which enforces basic human rights and is a little less dystopian, try "Manna" by Marshall Brain. It's an easy read and an interesting story.
Another good example is "Voyage From Yesteryear" by James Hogan. A little longer and with more drama, but essentially a rule-less society which enforces basic human rights.