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ICANN might technically have the ability to seize a domain with bad WHOIS, but in practice, they don't get involved with individual domains (hence the Registerfly debacle.)
HOWEVER, there are a ton of horror stories of GoDaddy and some other less-than-reputable registrars grabbing domain names and selling them for bad WHOIS info, so this is sometihng the individual registrar, not the registry or ICANN, would be involved in, unless the rules for .xxx are different than for other TLDs.
The rules about whether porn has to go under .xxx would be ones enacted by local or federal governments, ICANN wouldn't have any jurisdiction in this regard.
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