@"I've never understood this argument"
Dealing with the business side first, you are failing to see the long term game plan of the ICM Registry. Its like the old saying, follow the money. The ICM Registry are playing some big chess moves to force themselves into power (and profit). Here's some highlights:
(1) The ICM Registry will control the XXX top-level domain and so profit from its use.
(2) The ICM Registry knows the porn industry hates XXX because it invites censorship.
(3) The ICM Registry also knows American religious right want to censor porn.
(4) The ICM Registry also knows politicians are quick to use protection against porn as a short hand way to say to voters that they care. (They care all the way to the voting polls).
Anyway, here's the end game. The ICM Registry will profit from this XXX top-level domain no matter what happens, because some porn companies will use it, but ICM Registry are gambling on a far bigger long term payout. Because how long will it be before some politicians (in every country) playing up to the religious groups will then start to push for all porn *by law* to use the XXX top-level domain and only the XXX domain. Because at that point, its a huge win for the ICM Registry who will profit hugely from becoming centrally in control of the XXX top-level domain.
ICM Registry are playing a game of winning control and they are playing off each side to win control and that control will get ever better over time. Its just like the old say, follow the money and the money will be flowing increasingly into ICM Registry, as each country forces porn companies to use XXX by law (when they get around to changing their laws), so that country can then move to control all porn in their country.
So the ICM Registry gain control, politicians also gain control, and religious right get to fight to repress everyone.
The big question is why do some people seek so hard to repress the sexual expression of others. Answer that question and you get to the hidden driving force using the religious groups as rallying groups against the evils of sex. I don't have room to answer that question here, but it explains a lot of where the world is sadly going. So I'll post it on the end of this forum discussion if anyone wants to discuss it. It has to be said against these repressive controlling groups. :(