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The problem arises that if hosts start policing what they allow and don't allow, and something slips by. We can be found liable for damages for whatever. By monitoring and policing what goes on we actually lose many safe harbor provisions defined in various laws.
I've said this before and I will say this again. people are to worried about this whole .xxx thing. The US laws protect US citizens from being "forced" into .xxx it will never happen. People concerned with .xxx domains being blocked? Yes sure thats easy enough to do, but don't use a .xxx domain for anything its that simple. To block domains based on tld's on a ISP level requires a HUUUUGE amount of resources to control, something of which is not going to happen in the anytime near future, at least not in the states.
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