I also agree that children should not be sexualized, but if the parents do it (i.e. Jon Benet Ramsey), what can you do? That's like blaming the rape victim for the way she was dressed.
Yes, of course, kiddie porn and child prostitution are evils to be eliminated.
But my problem here is with freedom of speech. That statement could have meant anything. If we "ban" this, what's next? Some other ambiguous phrase that in a certain context, could be interpreted the wrong way. Hey, how about a law that says if you look at a child for 2 seconds, you're innocent, but for 5 seconds, you're a pedophile.
Are we to assume that anytime someone says "Praise be to Allah," that a terrorist act is about to occur?
I think this is some journalist's sick imagination, looking for yet another fear-mongering story. Let the market decide the fate of such products.