I am not certain that I would agree that "most cases" are overblown, but I would definitely agree that a sizeable percentage are caused by a combination of over-sensitive vs. boorish people.
Having worked in and around factories and repair garages, I've often wondered just how many men realize how demeaning some of the pictures and jokes they keep around themselves really are. I've been tempted to ask if they allow such things around their wives and children at home; I suspect I know what their answers would be.
Have I been offended? Yes, on occasion.
Do I consider it harrassment? No, for the most part.
Does the potential for harrassment exist in such environments? Yes, and it will continue to exist and be a problem until/unless people speak up and let others know that such things are demeaning and demoralizing and should not be allowed to spread unchecked.
There are still a number of people who see nothing wrong with repeating off-color jokes and having suggestive pictures or cartoons hanging around their work area. In many cases, these are the same people that laughingly pass along jokes that are "funny" because they stereotype a person by gender/skin color/religion/hair color/whatever.
Couple that with people who are insecure about their own abilities and beliefs, and throw in a lawyer or four, and you have the makings of almost any kind of harrassment suit you can think of.
I am a firm advocate of the original Golden Rule: Do unto others as you would have them do unto you. If you don't like hearing jokes about your own ethnic stereotype, don't repeat or pay attention to jokes about other stereotypes. If you wouldn't want your spouse/children/pastor to see that picture, don't leave it hanging up in the office for the rest of the world to be offended. And, in a calm, collected manner, do your best to ensure that those around you are aware of your distaste for such.
But save the lawsuits for the real offenders; those that use their power to deliberately belittle or humiliate or harm others solely because of their gender/skin color/religion/etc.
Lady Niniane