Yes, the thought being that an internet ghetto is being created that can then be blocked, say from a bible thumping state.
If sources are to be believed, as much as 80% of the .xxx business so far has been defensive. Universities, major businesses and what not have been buying up there .xxx domains to avoid, say, mcdonalds.xxx from being a clown porn site.
To me is is a straight shake down. They got as many whales as they could, and now they are going after the little fish. Although it may be good for some whores that signed away the rights to their .com for a line of meth and a shiny nickel.
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Thinking of cracked-out and/or tweaking whores getting their throats and asses brutalized for the next hit makes me hard. --Rear Admiral