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A .kids proposal was made by the same wonderul folks over at ICM who tried to bestow .xxx upon us, wasnt it? It got shot down for lack of interestet from the sponsored community, as far as I know (I could be completely wrong, here).
Seems like it would put ICANN in the same position of being the final arbiter of content for domains, which is part of the reason they have avoided .xxx.
How about bypassing the ICANN buerocracy all together, and getting some venture capitol and starting a private company that develops a safe network over its own protocol. Customers would be able to lock out all other traffic to and from their computer except for the specialized port this protocol would use. Include a custom web browser, and make sure it only accepts connections from companies with approved websites/content. Build up enough interest and you can charge any company a nice premium for the privilege of being included in this network, as well as the end user.
Either approach is going to be a long and hard fight, but with the right sales/marketing people and the developers to back them up it just may work.
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