New.net has been accepting registrations for domain.xxx (which only resolves using their Plugin or one of their partner ISP's DNS servers (which AOL used to be). However, as Onward pointed out, the actual domain (in the root DNS) you are registering is domain.xxx.new.net.
Where this becomes a problem is when the new .xxx extension is released, all those who have been using new.net extensions (who were fairly warned -- in the fine print) will have COMPLETELY worthless domains (meaning their worth will drop all of $0.01 or so to $0.00. This is, of course, because now their plugin/partner ISPs will adopt the new standard, and the old domains will not resolve.
All this aside, the REAL issue behind the debate over the REAL .xxx extension is:
In the adult industry:
- For .xxx: Gives legitimization to adult industry. Gives new "landrush" on prime terms.
- Against .xxx: Concerned this will make it easier to block. Concerned with REQUIREMENT to move content to .xxx domain. Concerned that "corralling" adult sites infringes on free-speech rights. Concerned that upstart prospectors will snag prime/already-in-use domains in this crucial TLD.
Family/Anti-porn:
- For .xxx: Makes it easier to block. If all content is moved to .xxx, then fewer children will see pornographic images when on typo .com domains or double-entendre keywords.
- Against .xxx: Gives legitimacy to industry. A virtual "red-light district" brings additional attention to porn industry. Makes it easier to find porn (as if this is a problem).
In conclusion, there are schisms on both sides of the debate. Personally I think both sides should be in favor of this domain, because it makes it easier to block (for the anti-porn folks) and it legitimizes the industry and (for the porn folks). The only concern against this TLD that I see is worth anything is the requirement to move adult content to .xxx causing issues with existing links and branding investment. One fairly easy way to address this is by allowing existing brand owners to apply to reserve their corresponding .xxx. Discrepancies (i.e., .com versus .nl) can be resolved based on which domain has a higher Alexa ranking.