If posts are tagged nfsw, then they'll be blurred, but unfortunately people aren't consistently using the nsfw tag. Most of the nsfw content is coming from lemmynsfw.com - I've asked one of the admins over there if they can just auto-apply the tag to any post on their instance with media attached.
How about we just scrap the ISP instead and start over with a company that can list what they are charging for? This isn't hard. Either it's a legitimate fee or it's not. I have a feeling they just don't want to disclose that they have been ripping people off for a few extra bucks every bill for the last decade.
The way I understand it, is that advertising money is not put into NSFW content on the site, so by making every big sub NSFW they are effectively punching reddit in the wallet and trying to make their IPO fail.
It's interesting that this story is being picked up by business news sites now. I don't know if that's good or bad, but it's at least catching the business world's attention.