What more could they have done? They asked for age verification upon sign-up. No parent is going to give their thirteen year old child a credit card for the use of age verification on a site like that.

The policy makes sense, parents should know what their pre-teen children are doing. The problem is that this is the parents responsibility, not the website providing the service. It's one thing for a movie theater or porn-shop to let minors in, it's on their premises. These kids are (mostly) accessing the internet from their own home, where the parents should be able to monitor their activities.

There's only so much that can be done and putting a million dollar fine on Xanga is a completely ridiculous way to try and make the government look like it's actually doing something to help the problem. They're laying a huge portion of the blame in the wrong camp.

There is a problem, this is clearly an overzealous attempt at creating an appearance of action to hide the fact that there is simply nothing effective that they can really do. Xanga is the unfortunate victim.