How is this working out for Australia? I understand a blacklist/firewall was put in the place there?
How? A lot of pressure put on a lot of politicians in the run-up to the last federal election, which promised to be very close (and was actually one of the closest in history).
You obviously have to pressure whomever holds the majority, but you've got to let the other side know about it as well.
So Australia is filter-free for the foreseeable future - it's become a 'dead issue' that politicians aren't willing to spend political capital on.
US Folks should take this as a bright data point that these battles can be won, but it will take a lot of effort.
Personally it's something that Tea Party and OWS types could get together on, because it sucks for everyone. That's what happened in Australia - they took heat from both 'sides' of politics and it got dumped (sorry, postponed)