Allowing a tyrant to exert his will may result in less freedom for others. Judging by the technical way you couched your argument, I think you're aware of the subtle way freedom works. It wasn't difficult for me to get what Steve was talking about. Suppose you are a developer. You are being given the option -- one might say the freedom -- to sign a contract that limits your freedom and that of others who sign it, in just such a way as to confer specific advantages on yourself and others, such as a porn-free environment. To claim that to be given that option necessarily limits one's freedom, would certainly be insane.
(Edit: added comma, added clarifications)