That is indeed the steeple of St. John's Church. Swampscott is my hometown, I grew up there from 1958-1976 before leaving home. My boyhood home is about a block or so past the houses visible at the end of the beach. As a kid I used to go to this beach all the time, until it got polluted and stinky and I went to another beach farther away.

I'm pretty sure I've seen this photograph before somewhere, as I remember my reaction to it: "I sure hope the Lynn Fire Dept. has their hand trucks out fighting that fire on the horizon!"

... in the Shorpy mode: "Finding Dory"

The Swampscott dory has to be one of the prettiest fishing boats around.

If you look directly up from the man with the black umbrella, you can see the tip of a steeple -- probably St. John the Evangelist church. I've zoomed in on it in the street view below, you can back up to look around. I can't match any buildings, but the contour of the beach matches, as does the topography. To the left is an industrial area.

What are those furry-lookin' things hanging between the posts?

[Lobster leashes. - Dave]