It's not legislation yet, but it's official government policy, and with threats to make it into law if the government is not satisfied:
"Cameron gave the companies an October deadline to comply with the demands to filter the terms. He said that if the government is not satisfied with the progress it is prepared to take legislative action."
Except now we have a bunch of concrete evidence of just how stupid and flawed these filters are if the gov tries to force them into legislation. (For example, to force filters onto all ISPs.)
And a chorus of silence from the general population. The bad guys won here, no matter how upsetting it may be to the general HN crowd (at least, if I've read the mood correctly).