I don’t think that we’ll see common sense applied to this area any time soon, based on current conditions (arresting minors who take naked pictures of themselves, etc).
I propose the following:
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Anything that is completely animated should be legal. If there is no actual child involved, then no foul.
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The use of very small or young-looking adults to simulate child porn should be legal. (This may already be legal; I don’t know.) But it should be allowed to be sold as “simulated child porn.”
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The production and possession of porn should be tied to the local age of consent. If a 16-year-old girl is considered by society to be old enough to have sex (something that has a good chance of having life-altering consequences), then she should be considered old enough to be photographed naked.
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As things currently stand, somebody who is accidentally sent a single child porn image is in very serious trouble. There should be some sort of useful affirmative defense allowed. Perhaps something like sending a text back to the sender, “I didn’t ask for this picture.”
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Reform the sex offender registry laws, so that only actual predators are required to register. And reform the conditions of release. The current conditions are unrealistic in many cases.