First the network allowed everything. Then ISPs started with forbidding child porn as the one and only one exceptional rule. Then it was everything except "illegal content", being everything before with the added inclusion of copyright infringements. Then extreme porn was added, because anti-porn can always be advertised to end-users as a mechanism for protecting children. Then it is "mature content", including anything an ISP might get a letter of complain about, but which does not hurt any business partners. This meant that they can cut cost on support, but at the same time protect any revenue from advertisements. That mean items such as tor, political satire, all form of porn, unpopular religious sites and (anti)social hangouts get listed, but things like alcohol, commercials directed to children, political advertizements, violence and sexual hinting content will be left alone. After that, they start to add items to the list which competes with the ISPs' own products, such as VoIP, but also products that put a strain on their network such as video streaming. The last bans tend to be less severe, as to show how slow competing products are with their low quality of service. This also allow for a mechanism to extract levies from larger companies such as Google without going with a full blown ban that might create outcry from ones consumers.
The market won't regulate itself. There are too few options of consumers, and there exist a clear asymmetrical information gap between buyer and seller. Lemon laws for services could help here, but it would be the same effort or even more effort than to create industry regulations for ISPs.