Richard Clayton has a nice, very clearly written article on what is wrong with Phorm, over at The Guardian (Whitehall's got Phorm). This should be required reading by news reporters who fail to grasp the real issue is the interception issue, and not the targeted adverts.
Meanwhile, Simon Davies of 80/20 Thinking and Privacy International, who has failed to make meaningful statements about Phorm (but who works as advisor to Phorm via 80/200, is quoted in an Independent report on the EC action (Internet privacy: Britain in the dock) as saying:
Simon Davis, director of Privacy International, believes the row has erupted more over "sovereignty than substance. It is almost entirely political".
Let's hope that's him being misquoted. As ever, keep up to date via the nodpi forum.