How is it a step down? Without SNI, the public IP you connected to also uniquely identified the domain/cert you were visiting.
Edit: Actually now that I think about it, could they just sniff the certificate offered by the server and get the same info? If so that's unfortunate, but plenty of firewalls don't seem to be doing that, as I noted above with my youtube example.
The sites in question will likely be blocked soon enough, but it won't be because of SNI being less secure, it will be because more and more traffic will default to TLS - a development helped along by SNI, certainly - and the operators will notice and the gateway providers will add the required sniffing, covering both "old school" certts and SNI.