Missing the point
Leveson seems to have missed the main point: this was not a failing of the law, but a failing of law *enforcement*. Some reporters broke the law; the police knew about it, but did nothing. Some police broke the law, too, selling information to reporters - of course, they got away with that completely.
Forget 'judicial inquiry': we should have had a criminal investigation of the journalists *and police* involved, leading to prosecutions and sackings of everyone caught - press or not.
One proposal I do like, though, is the introduction of whistleblower/ethical protection, that journalists should be free to refuse an assignment or instruction on ethical grounds. Why limit that to journalists, though? A few professions already have it to some extent, but it should be much more widespread: system administrators instructed to violate a user's privacy, for example. (Yes, there are some laws which *forbid* sysadmins from doing some things, but is there enough protection in place for us to refuse to do things we believe to be illegal and/or morally wrong?)