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The saying "Making a mountain out of a molehill" comes to mind when I read the OP.
This is a local ordinance law, not national, so all producers would have to do is move outside of Tokyo's jurisdiction to circumvent this "travesty". If it effects products being sold in Tokyo as well (skimmed over the OP), then they'll just slap labels on it to CTA. It doesn't seem like this really effects products being sold abroad, just locally.
Weeaboo's just need to calm down.
Q: This is only sexual stuff, right?
A: No. It reads "anything that may hinder the healthy growth of youths by stirring sexual emotions, promoting cruel behaviour, or causing suicidal or criminal tendencies", which is a purposefully ambiguous blanket statement that can pretty much be applied to anything. Even Doraemon could be considered 18+ under this.
Q: Elaborate?
A: No criminal acts. That means no killing, no stealing, no carrying of weapons, no sharing of bicycles, no smoking/drinking for minors (in fact since it says "promoting" criminal behaviour, it could be argued that no smoking/drinking will be allowed at all). Basically anything with action could be considered promoting cruel/criminal behaviour. Meanwhile the "stirring sexual emotions" part will similarly affect anything with fanservice or romance. So basically, only stuff like Hidamari Sketch will remain.
Q: What will this affect?
A: All forms of fiction except novels and live action.
Q: How will it affect them?
A: In Tokyo, everything has to be classified by the industry under either all-ages (below 18) and 18+, and stores will have to make sure minors can't get 18+ stuff.
Q: So just slap an 18+ sticker and life goes on as usual, no big deal, right?
A: No. If they can't sell it to minors they won't bother making it in the first place.
Q: Only Tokyo, so move out, no big deal.
A: Tokyo is the economic centre of Japan, plus all of the big companies honsha are located in Tokyo (some have their own ridiculously expensive skyscrapers located in ridiculously expensive districts). The rest of the country will be affected. Plus if it's passed in Tokyo, other prefectures are very likely to follow suit, as always.
Also, Dan Kanemitsu is a translator for manga living in Japan and had attended the original hearing about this bill in order to voice some international opposition to this bill.
In any case, this bill has passed into law:
http://www.animenewsnetwork.com/news/2010-12-15/full-tokyo-assembly-passes-youth-ordinance-bill
This. Isn't. Over.
Edit: There is 4-5 months until this bill is officially enacted, so there is time left. Furthermore, here are some series that would be designated as "harmful material" under this act from my understanding of it, major ones will be highlighted, and will be in no particular order.
Azumanga Daioh (School settings not allowed)
B.Ichi (Violence)
Bakuman
Bamboo Blade
Basilisk
Berserk
Black Butler
Black Cat
Black God
Bleach
Buso Renkin
Case Closed (Detective Conan)
Karin (Chibi Vampire)
Claymore
Code Geass
D.Gray-Man
Death Note (While not sexually explicit, the nature of crimes being committed in the series will definitely be deemed as "Harmful")
Dr.Slump
Dragonball
Eyeshield 21
Fairy Tail
Fullmetal Alchemist
Gantz
Gintama
Hayate the combat butler
Hellsing
Hero Tales
Higurashi
Hunter X Hunter
JoJo's Bizarre Adventure
Karakuridoji Ultimo (Stan Lee would be pissed, as this is a repeat of what happened i the 1950s, I will be informing him)
... Let's just say practically EVERY manga I have and more.
Now, there is supposed to be some kind of regulatory board that will decide what is "Harmful" and what isn't, but considering the extremely vague nature of this bill, I don't think this will turn out well for old and new mangaka.
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