http://www.icannwatch.org/articles/0.../0414212.shtml from 2005
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"Two years after the USG mandated childsafe second level domain kids.us opened for business, it hosts, one can hardly say boasts, a scant 21 live websites.
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a tightly regulated tld will not make millions, .xxx WILL. Therefore, they choose to go .xxx instead.
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Some in the US Congress were critical of ICANN after it failed to okay a .kids TLD in its 2000 new TLD round, Following an unsuccessful attempt in 2001 during which a dangerous precedent would have been set in which the USG would require ICANN to set up a .kids sTLD, Congress then overwhelmingly passed the (now apparently mis-named) DotKids Implementation and Efficiency Act of 2002
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.kids is old, and if the people in control of this stuff WANTED .kids, it would be.
21 sites vs every .xxx you can think of, follow the money.