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The main thing is there is a major psychological difference between being paid to have sex with someone else who is being paid to have sex and being paid to have sex with someone who is paying for sex.
Like most laws, they are tradition based, as well.
From a utilitarian standpoint (hate to quote Wikipedia, but):
The same can't be said about prostitution.
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Exactly what I was thinking. The government receives a lot of reveneue from pornography after taxes. If if didn't, then it would most certainly not be legal, just as prostitution. A bit off topic, this concept may also explain why marijuana hasn't been legalized, where as cigarettes have.
As far as legality in the eyes of the government goes, certain acts receive a certain 'selective attention'.
Jam it back in, in the dark.
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RainMan