Remember when BT got lambasted as they intercepted all their user's web page requests using Phorm to be able to track users and insert their own ads into web pages? There was a big backlash with everybody saying a web page should be allowed to travel from a web server to a web browser unmolested. It's no surprise they will jump at an excuse to be able to intercept all their users web pages and manipulate the content before it arrives at the web browser. Sets a great precedent for them.
It would be interesting to see transcripts of Cameron's speech as it's hard to believe he is as idiotic as he has been made out to be. His quote that we must "deal with the Internet" doesn't mean anything as radical as a report button on web pages. Though his quote "We must not allow the internet to be an ungoverned space" is bound to make him a hate figure globally online. I've no idea how his PR man let that slip past. "Just because you are online does not mean you are immune from the law" would have been much better.