So you're saying that having illegal material on your computer is not a problem because, well, it's "your property"? Like, it's fine for you to have child porn (or pirated software, or illegally downloaded copyrighted music or movies) because hey, it's all zeroes and ones, and you're not "making a business out of it"?
I empathize with the argument of some free speech advocates that it's complicated to find the right balance on where to draw the line in terms of censorship, but frankly the argument that you can do anything you want just because "it's zeroes and ones" and that is not "the real world" is plainly ridiculous. Thankfully what you propose is clearly against the law in most countries.
What separates a simple file host from a complicit active member? I think at that point you're one in the same.
This matter isn't about an isolated machine; it's about a networked machine.
And to the rest of what you've said... I can't do anything but disagree with you.
Childrens' safety is not a digital thing in a computer, and AFAIK nothing suggests childrens' safety is more at risk right now than from other forms of violence that seem to be perfectly tolerated and celebrated in books, movies, music.
If I'm trying to make a business out of child porn, sure try to prosecute me. I believe selling other peoples' pictures without consent should be illegal in any case, specially if in demeaning circumstances. If I'm just sharing it, though disgusting it may be, the law should not stick it's nose in it. Just like it's legal to share books on how to make bombs and poison people.