The key point :
"A language review panel working for the ministry had initially decided that it was not its place to make moral judgments on characters - instead leaving it up to parents to exercise their own common sense."
Certain Kanji (mainly NGUs i assume?) weren't to be used as part of a name, now they can be.
Hands up if you think ANYONE in Japan will be stupid enough to rush out and call their kid "small prostitute" , "Hairy Cock Pole" or anything else ridiculous ?
The difference now is that if some family wishes to subject their child to being called something stupid, resulting in years of bullying and a repressed hatred of their parents that eventually culminates in their bloody demise, then that door is now open!