This bluenose censorship stuff is a pretty pointless pursuit. The internet is quickly heading into the living room. I already have a computer and a modded Xbox/Media Center hooked up to my HDTV. Should I choose, I could be watching the most disgusting porn imaginable with two clicks of the remote. In the near future, the media will become super compartmentalized with Baptists watching, or rather recording, the Baptist channel, bird watchers watching the birding channel and so on. The smut is going to be there to so deal with it.
The bit-delivery will be a matter of infrastructure, possibly even be a regulated monopoly, like phone or electric service. It's all a matter of what software to choose. If this were the case today, you would not have to accept Comcast's lineup of channels just cause they own the wire going to your house. A family-friendly package of channels would arise if there was an open market for such a thing.
Existing channels which are pushing the envelope might even control themselves better in order to gain entry into such packages.
SD