Alright, time to address this:
#1: Mr. Bee is an idiot. The bottom line here is that he cut a plea deal as opposed to fighting it, which sadly means this will help establish a degree of precedent. Don't misunderstand the case here, the courts never actually "beat him" instead he was intimidated into backing down.
The thing to understand here is that they are claiming this work "clearly had no redeeming value". There is a very specific process for determining such things, which is actually pretty time consuming, it's one of the reasons why so many porn movies get made that probably have no redeeming value (though many do something like make a "social statement" about sex in the dialogue to defend themselves if need be) because sheer volume makes them difficult to police.
When I took Criminal Justice many years ago, my instructor was the former head of the Connecticut State Police, and had sat on review panels for this kind of thing, and pointed out that proving a lack of redeeming merit, especially artistic merit, can be basically impossible if the work's creator decides to contest you.
Apparently they still need to prove this is indeed legal porn, which means Mr. Bee should have forced them to review each specific work properly, and then declare it obscene. Chances are at that point even if every one was obscene they couldn't nail him, because of this little bit about the law not being retroactively applied.
It's not my area of legal expertise, so some might be able to correct me here, but from where I'm sitting and what I learned (which goes beyond your typical "Internet Lawyer") it seems to me like if the guy didn't get talked into a plea bargain, they probably never would have gotten him.
If I'm correct (and I imagine I am, this is an educated analysis), one shouldn't so much be decrying the laws in question so much as the guy who made it easy for them.
2: I have very mixed opinions about this entire subject itself, to be honest I seriouly hate pedophilles having been a victim once myself. The problem with laws about suggestive portrayals of underage characters in cartoons and drawings is that it's too broad, assuming this law exists as described. I'd imagine that means that it's ultimatly impossible to enforce if the person on the receiving end wants to fight, but if somehow it ever DID become enforced as it's described it doesn't really do a good job of defining it's content. It raises questions about whether comics like the old "Marvel Swimsuit Issues" which showed well known teenage mutants in bikinis and provocative poses be considered "child porn" under this definition? Heck for that matter, what about like half the comics out there. That raises some questions about whether it should be okay for some teenage boy to fap to his favorite super heroine that is around his own age, but it somehow becomes criminal to have that comic once he becomes an adult?
The thing is that there are some illustrations of young children that probably do go too far. It's impossible to really make a law addressing that, that wouldn't also hit a lot of other very legitimate works. Not to mention that the line between "shock" material and "fap" material (so to speak) is one that has to be understood. In many cases, such as in horror, the image of a child in trouble/being raped/etc... is done because it's shocking and horrorific, not because the viewer is supposed to get hot over it. Sure some people might, but there are also people who apparently spank off to road kill. This should of course be covered in part of reviewing something for obscinity (as horror is an accepted genere, and a work of horror can be considered redeeming on it's own merits, though admittedly horror is always under fire).
My major concern about cases like this when I hear them is if one day I'm going to have to sit down and defend my comics collection or something. While not as huge as many people's collections, I have a decent pile of comics and graphic novels, including some adult ones. It makes me wonder if one day I'm going to be sitting there with a public defender preparing a case to avoid going to prison for 20 years because some comics I bought at Sarge's (local comics place) when I was in college invoked the ire or someone who spotted them on my shelf.
That said, as I said under point #1, it seems to me that the standard protection applies. Unless something this guy has was declared obscene previously, he should never have backed down.
Even in cases of things being declared obscene, I know ignorance of the law is no excuse, but if people want to go on these crusades, more effort should be taken to communicate obscinity rulings and what might be on the list. I also think the goverment should be required to reimburse people for legitimate purchuses that are later banned. Basically if I picked up some of Rebecca's "Housewives At Play" stuff from the local comics shoppe when it was more popular (or whatever floats your boat, it might be "Genus" for the furries out there or whatever), and the gubberment wants to ban it, they should be forced to refund the current market value. Some of this stuff increases in price, if they want a high quality book from me, they had best give me the current collector's rate, not that I sell myself, but fair is fair if it was a legitimate purchuse (and arguably an investment). It would be ironic if one day collectors suffer prison sentences for keeping old comics that are later banned in pristine, plastic-protected condition.
On some levels it might be darkly amusing though:
"We the people submit that Irving Snotchpockets is a pedophille. While helping him move one of the members of the moving crew discovered this... a compilation of the banned work "Secret Wars" in which there is a sub plot involving an adult (Colossus) who has improper feelings for an underage girl (Kitty Pride). The girl of whom is presented sexually, in form fitting attire, through hundreds of other banned books connected to this same series. The fact that Mr. Snotchpockets purchused this comic when he was 15 and had no idea it was illegal in no way should influance the desicians of the jury, after all ignorance of the law is no excuse"