Let's face it: expectations of privacy on the Trail aren't particularly reasonable. There will be awkward situations. You can head off to relieve yourself a minute before an overtaking hiker you never saw coming has the same need. If people in a shelter pack together to make room for you when you straggle in out of the pouring rain, you shouldn't expect them to then contort themselves to look elsewhere as you disrobe. Just strip down and get into dry clothes quickly (the speed for heath reasons more than modesty), and don't worry about it. The hikers there didn't solicit you as a stripper, nor did you volunteer. It's just a bunch of people trying to avoid bad weather. I've never met anyone through-hiking for the purpose of perving on dirty, smelly fellow hikers occasionally forced by circumstances to get naked. That said, you probably want to exercise caution if you're sharing space with partiers or obvious short distance hikers. I put a lot more trust in serious through-hikers.
Do you think spending time dangling your clothing near a privy hole is a good idea? Embarrassment is much preferred to fecal contamination, methinks.