Ive been reading over the many debates here and finally decided to post in this one so boys and girls get ready for somewhat of a wopper!
First of all I would like to tell everyone before this post good job with there recent arguments. They are all very good and solid but now I must bring up another site that had similar troubles. Most people know of Hongfire, they had a very similar problem happen, though I am not sure where the server was located sadly enough. They ended up down for a while and came back with an even larger Loli base. I would like to state that legality wise the only way I think this could be wrong is in VERY strict cases, such as the dreaded Toddlerkon, or certain Doujins where they actually say and I quote "I love feeling my 11 year old sister around me like this." Those would be the only times that I could see it being wrong, as most of the characters in Anime or Hentai either look really young at age 231 or are like 15 with breast the size of coconuts (Insert Shippuden Hinata). Its just my opinion that this is all that FAKKU should really beware of.
Also, I would like to give a nice big E-Slap to all those that see Loli as someone put it so perfectly, a "Gateway Drug". You truly deserve to get a couple of negative IQ for that statement. So until Bush flips and tries to take away our bill of rights, I say let Loli live!