What innocent observers are missing...
The simple fact is, no one outside of a couple of small groups (mostly politicians, prudes, a small number of people who will make a ton of money off of this... and the severely-ignorant) have ever really supported the ".XXX" domain. However, another fact is that identifying and corralling certain types of speech are absolutely essential to its elimination, persecution, and other forms of manipulation, exploitation, and (YES...) censorship.
The next step is legislative, REQUIRING such "adult content" to be isolated within such an easily controlled, and blocked, "domain" (even though, EVERYONE has a different idea as to what "adult content" actually is... and, what is (or, is not) "acceptable"... creating a horrific can-of-worms). I can see years (if not decades) of squabbling and abuses (locally, nationally, and internationally). And, all the while, the ".XXX" domain (and its associated legislation) will be used as a CLUB, to trample free-expression, and access (...by the same self-righteous, self-obsessed, groups and individuals that always scream about "safety", and "protecting the children"... for their-own agendas).
So, soon... disseminating any information about "sex" in any context on the Internet (or "ISPs" merely allowing "access" to such content) becomes such an onerous minefield, that restrictions, dangers, and costs will abound, and more of our freedoms (personal, social, and monetary) will vanish
At the absolute best, this is just an asinine waste of time, or just another scheme to, artificially, and forcibly, extract revenue. At worst, this is a concerted effort to attack basic human-rights.
Either way... it's B-A-D.