Going back to the original question as far as I have discerned from all the hype it is only the Home Office that has the powers to prosecute under the RIPA. The only recourse for "Joe Citizen" is to report the facts to the police who in turn report to the Home Office who will then, if they think fit, prosecute.
Deep Packet Inspection the technology behind Phorm, Barefruit,PaxFire,Nebu-ads etc will not be banned by the government because the government will rely on that technology to prevent people downloading pirated music.
GCHQ have their own system in place to intercept all forms of communications. But in a democracy one has to weigh the cost of the lack of privacy of against safeguarding the population against repeats of 911.
Privacy of personal communications is a deep rooted freedom that is expected in modern democracies. It is in the UN Charter of Human Rights:
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No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence
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the EU Charter:
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Everyone has the right to respect for his or her private and family life, home and communications.
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and has been enacted into laws such as RIPA and DPA.
Phorm claim that their system does not alter advertisers pages apart from the ones of their own "OIX" network but the technology is there should there be a change in their policy. Barefruit and Nebu-ads on the other hand do not make such a claim.
What worries me most is the possible vulnerabilities in the system. When barefruit came out it did not take hackers to long to find a javascript loophole in their system. According to Phorms
2007 Financial results (page 31) Phorm only employed 2 people Research and Development in 2006 and 4 in 2007 (compared with 34 and 58 in sales and admin). I can't comment on the technical skills and qualifications of these people but compare that with the myriad employed by G, M$ and other software developers. I'm sure there must be many loopholes that need to be plugged. For instance the way POST requests are handled.
According to Richard Clayton's article (#47) Phorm will intercept a POST request and parse the webpage. But according to
RFC 2616
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If the 307 status code is received in response to a request other than GET or HEAD, the user agent MUST NOT automatically redirect the request unless it can be confirmed by the user, since this might change the conditions under which the request was issued.
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So if the useragent (eg Firefox or IE) handle these requests correctly what will happen with Phorm?.
Also a website's POST request may password protect information that is of a personal or private nature. Even the big G can't get to see these pages without the permission of the website owner.