I don't believe anyone's arguing that what NewzBin2 are doing is legal. Nor do I believe there's any doubt that it's technically possible for BT to do what they're being asked to do here by the courts. It's not like they're being asked to do a real-time per-page filter of Flickr for inappropriate content, for example. There's one site, with overwhelmingly illegal content, and they're being asked to block it.
If BT were restricting access to iPlayer or YouTube in favour of BT Vision then I agree, that would be a Net Neutrality issue. If they were being asked to do realtime filtering of user-generated content then I agree, that would be a moronic request issue. Neither of them are true though, this is a static block of overwhelmingly illegal content and I don't for one minute see why this is a problem.