I get a strong impression from the people who have posted that there is big difference in sensitivity to such language between the USA and Britain/New Zealand/Australia, especially amongst younger people. I'm still left wondering why.

I think "younger people" will grow out of it. I certainly swore a blue streak in high school. I used to like to point out the irony that I'd learned to swear in Catholic school. But then I just sort of stopped, and now I don't swear much, unless I'm extremely steamed. People seem to view others who swear a lot in everyday conversation as somewhat childish, or showing a lack of command of language to convey feelings. It also shows (as someone else mentioned) a lack of respect for others' sensibilities. So I guess I just kind of stopped, not wanting to be viewed by my mostly older friends as (1) childish, (2) inept with language, and (3) insensitive.