As an anecdote, in 2006 I was in grad school and helped a friend with her summer camp for nerdy teens. I still remember the brother and sister (16ish years old) who were deathly afraid to be outside at dusk during the summer because of the West Nile Virus, which at that point was a concern but nothing DEET couldn't prevent. They'd read about it in the newpaper, I think.

I don't think it's the parents who are solely at fault for the safety paranoia.