Yeah, pretty much this. But perhaps here lies the problem. The perception of reality is heavily influenced by the media we consume every day. For example, if all the newspapers giving frequent headlines to violent crime, people will perceive violent crime on the rise, whatever the actual facts are. Similarly, porn could give false sense of reality when it comes to sex, when it is mass produced and consumed, thus it could well be that the portrayal of women as a sex-toy would influence the attitude of porn consumer men towards women.
I do not praise however any kind of ban, and as I suggest that the problem actually lies somewhere else. You say you can make a distinction between reality and fantasy, which is great, but I get the feeling sometimes, the most of the population actually can't. It is rather the part of the human condition, if you like, because we see the majority of the human population is in to some kind of distortion of reality, such as superstition, or religion, or delusions about races, minorities, women. I would go so far, that certain genres in the film industry became popular because they are perceived as reality and thus influencing the reality. The "gangsta" life is an example of this: everything is about money, "respect" (never understood the concept of respect on these terms), rampant sexism, so on. This is a self-reinforcing pattern in a way, as films, music, music videos, celebs are produced because it draws large crowd, and is "cool", on the other hand, the a part of the crowd copy the behaviour that they see in the telly, and try to be more gangsta in their everyday life, including all the sexism, money-worshipping, violent. Similarly to the issue with religious education, this is the spreading of memes that are obviously self-reinforcing, and definitely not positive in the course of human development.
Since there's no authority on Earth, and could never possibly exist that could ban all these behaviours to be propagated, one must make a larger effort on the consumer base and also, produce, and promote high quality alternatives. No easy solutions, and not necessary successful either. The work on the consumer base would be organising our education system around critical thinking, and reducing, gradually removing the hero ethos from our public discourse, and way of educating children. The positive hero just as much harmful in this way than the negative. Also, specifically about sexuality, I think feminists, like me should rather focus on reinvent this whole thing: we live in an age where pile of old stereotypes are crumbling, the social structure based on gender aren't necessary for the success of our biological need, but stereotypes die hard, and we're just half way between finding sex as a communal, physical joy, and the firm necessity of reproduction. Instead of shying away from sexuality as an entertainment, we must should just make it normal to children to grow up in an environment where sexuality, as long as it is promoting fantasies as such, but also the natural play of bodies of lovers, there would rather to gain from it. I mean, the entertainment genres are clearly making a very unhealthy distinction here: especially, films of Hollywood promoting "clean teenagers" who only have their first sex at the graduation, and mostly coupled with the monogamistic notion of LOVE, and show nothing of the reality, either the play of bodies, neither the real events that usually leads to people to have healthy sexual life as they are. No, we want to give moral lessons of a sort that ends up being out of touch of ourselves. On the other hand, the porn industry is awashed by poor quality, again unrealistic doll-worshiper, unrealistic, promoting inconsequential behaviour. Now, while I think both extreme should be allowed, we are clearly out of proportion on both sides.
People here, who bash the feminism of the 60's should learn more about this age. I genuinely think that this is an unfinished business and there are plenty of thoughts of the 60's/70's feminism that we should learn from. We're in the limbo now but it is time to move toward freedom and equality, which can only be achieved by widespread critical thinking. That's a lot of work, and "free market" would not help in it.