On 26 May 2011, a new EU directive comes into force
Yeah... It now needs to be transcribed in member countries. Which can take another months or even years if a few of them drag their feed. Don't hold your breath.
There's something sweet, with respect to internet law: for looking into whether what you're doing is illegal on the internet, it might be illegal a) in the country you're based in, b) in the country your visitor is based in, and c) in the country your site is based in. Cloud-based hosting adds an extra twist to the problem (e.g. if your S3/EC2 site is based in the US with cloud-front serving data in Europe).
As you can imagine, a country's justice system can seldom go after a site operator as conveniently as they'd like, if at all. Thankfully so, too. Were it not the case, it would mean that Iranian censure would apply to US-based sites, among other colorful consequences. And since it is the case, questionable sites such as those from EU neo-nazi parties end up comfortably hosted in the US.
If the EU member states set up laws that website operators find too coercive, they'll will just relocate.