All this means is that any ISP smaller than BT, Virgin etc will be immediately crushed, and the handful remaining will be forced to comply with the government's wishes.
How is that any different from a central database?

How Bush being gone changes everything!

if the ISP's etc gather the information, could they claim that they own it and would they charge the government for using it? moreover, who else would they allow to access their database about all the UK citizens (for a price of course)?