re: Dave got there first
Indeed, let me be the first to invoke Godwin's law and say you don't allow the government to build gas chambers because they're more efficient than lethal injection for capital punishment.
Allowing governments to build the infrastructure which *could* be used for oppression is reckless endangerment.
Child porn is pretty much illegal in all states but what is child porn in the UK might be quite legal in Holland. Ditto for drug offences. Authorities should be policing their own areas according to their own laws, not bumping responsibility (and the cynical would say, costs) up to the EU. That's why we have different nations - so people feel they have some degree of self-determination and control over their lives. A global dictatorship would probably be more efficient than having multiple countries, but it isn't desirable, so lets not start to build it.
As for the public reporting "illegal content", I wouldn't - admitting you downloaded it to your browser is likely to land you in jail for 10 years or more. Even if you wanted to report it, why not just call crimestoppers? Using existing infrastructure has to be cheaper - oh wait then we can't give our corporate sponsors a nice fat contract...