So people have touched upon censorship, but in the big picture, is this a future trend? China's current implementation of the Great Firewall and now this? This may have a larger impact than most people think and I'm not big on fear mongering. Reduction of the access and free exchange of information breaks down the fundamental usefulness of the internet and if greater organizations (I say organizations because even if a country doesn't do it, but ISP monopolies worldwide do, the results are similar) continue down this path the internet will devolve into something resembling television: a passive experience with controlled and filtered inputs and outputs.
Last tin-foil hat thought: The reason I'm concerned about this is that I've been confident that these attempts to censor or filter the internet in the past were futile because, like water confronting a rock in its path, the information will flow around the damage. But if things go the way of "1984", the general public just won't know of any better if they are brought up in a filtered environment and what they're missing. I'm straining my memory, but I believe in Orwell's book, they removed terms to describe dissent or hatefulness so that people would be unable to express their dissatisfaction. AOL users thought that their world WAS, in fact, the internet until they changed ISPs.
Alright I'm digressing. If I lived in Australia, I would fight tooth and nail against this. To redirect the "Think of the Children" play, even if they are not subject to illegal or lewd material early on, it's still out there. A more reasonable action would be educating in school safe surfing of the web, how to determine reliable and unreliable sources and proper teaching of ethics in a more subjective and technologically advanced world. My last example is this: Would you rather have teach someone walking down the street why its important not to break into someone's house or line the doors and windows with spikes and barbwire? Think of the children!!!!
/rant over. I'm getting some coffee.