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I don't think that ICANN wants to end up in a legal struggle with the US government. If the .XXX domains are approved, I would expect the US to make moves to block them for some reason or another, and this could drag into court for years.
I think ICANN keeps floating it trying to find support, but in the end, they realize it doesn't work and is going to be a major hassle to implement.
Without legislations to drive porn companies to the .xxx domains, they serve not purpose except perhaps to shave the sheep and line the pockets of the company promoting them.
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