Yep, my dog Bill (evil mutt he is) sleeps like that all the time, with his business exposed to the world. I always grew up with female dogs because my Mom thought the male dogs were gross. First time she saw Bill sleep like this at her house, she wrinkled her nose, waggled her hand in his general direction and demanded , "Ricky, covah zat up! daso guh-ross" (said in a japanese accent, not a german one)