All that's happening is that the government is asking ISPs to have customers opt-out of filters. The filters already exist for many providers and search engines, only we have to select them ourselves.
At the same time, videos streamed online will be subject to the same controls as those sold in shops; the clumsily titled Child Exploitation and Online Protection Centre will be being given more powers to examine secretive file-sharing networks; and a database of banned images gathered by police will be used to trace illegal content and who's looking at it.
It's the thin end of the wedge if you want to see it that way. On the other hand, it's only another way of doing what we already can. For instance, isn't the Google Images
Safe Search option already a kind of tits/no tits button? And doesn't GCHQ have access to all of our search histories via the Yanks?
I foresee a rash of court cases when the filters start blocking perfectly legitimate sites, especially business ones. And what's the betting someone will hack
www.gov.uk and fill it full of iffy links or pics of politicians doing what they do best, ie: shagging each other and the tax payer?