Well, if it just means books about schoolgirls being raped by gigantic squid or gang-banged preteens being confined to the adult section of the stores, I don't really see a problem with that. But it's a vague law open to the personal interpretation of the courts and that's proven in the past to be dangerous. You just have to look at the trials surrounding Burroughs' Naked Lunch or that laughable witch hunt against Jello Biafra involving a piece of HR Giger art, or really any of the whole 80's music censorship scare to realize these kinds of laws have the potential to criminalize genuine works of art.
That said, there's a pretty big difference between Nabokov's Lolita and loli-con.
It does stink of the animation ghetto, though.