From this post, one gets the sense that Reason's vision of libertarianism entails allowing transsexual prostitutes to freely roam the streets of your neighborhood at all hours. No doubt this tolerant policy will sell much better across the fruited plain than Ron Paul's less cosmopolitan paeans to peace, sound money, and the values of the founding fathers.
Of course, prostitution is a victimless crime and should not be penalized by the state. But does libertarianism mean you have to tolerate streetwalking prostitutes soliciting customers on your neighborhood's public sidewalks? Not at all. The only reason sidewalks are "public" is because government forces private property owners to allow people to walk across the sidewalk on their property. When a practice on government-owned streets or sidewalks (which often are actually private property in the case of sidewalks) offends almost all who live and pay taxes in a neighborhood, I'd say it's fair enough that those property-owning taxpayers have a say in whether it can go on, and not an issue of "policing the sexual behaviors of your neighbors." It seems to me that the man mentioned in the Reason item who gives prostitutes and their customers a hard time has found a non-state solution to his neighborhood's problem. Not something I'd do or even encourage myself, but then again it's not happening in my neighborhood.
(It's worth noting that legalized prostitution would mostly move the practice off the streets and into whorehouses -- on private property, where it belongs.)
