Thanks to Brettuk for posting this in BPN.
A net domain for pornography was originally considered in 2001. A proposal was made in June 2005, a final approval was expected in December 2005 but was delayed to May 2006 and was quickly rejected. Over the years, conservative groups, politicians and pornographers have actively criticized the .xxx domain idea. Operators do not like the idea of easily masse blocking of porn sites.
ICM registry, the backer of .xxx, has made sure that site.xxx will not hit a user with spam or spyware and will use a system to label their content. ICM has also taken steps to ensure child pornography or anything of the like is not available or promoted. ICM promises to actively police all .xxx sites. Internet Corporation for Assigned Names and Numbers (Icann) has invited the public to comment on the revised .xxx agreement with the final cutoff date being February 5, 2007. If final approval is won it is not yet clear when the domain could start operating.