I love this thread! To add to a couple of the very insightful things brandon said:
In addition to holding and helping in vaporization of pheromones, pubic and axillary hair also serves to reduce friction between damp sweaty skin and also create a gap between damp skin surfaces to aid in evaporation of sweat - this helps reduce the risk of fungal infections which otherwise love confined, non-ventilated spaces. (so, ironically, even though people say they shave their pits and pubes for "hygienic reasons" they are actually increasing their risks of developing fungal infections!)
Also, with the visible penis = sexual selection for longer penises idea - this has been used to explain why some of the longest flaccid penises (and foreskins) are seen in certain tribes in East Africa such as the Turkana people because they, even today, spend their lives naked. As a result women can very easily select for men with longer penises. The reason their foreskins are long is also interesting, as they view a male as only being truly naked when the glans is visible and so women select for men who best avoid the "embarrassment of being naked" by selecting men with longer foreskins...