Hate to be the bringer of bad news but, that is easily bypassed, much easier to bypass than WPA or WEP encyption for that matter. Ever hear of ports? Yeah, pick a port above the routers limit for whatever app you're using to use instead of its normal port, same way pirates get away from being blocked by ISPs (their routers/switches don't block above a certain number of ports either). There are 65536 TCP/IP ports i believe, and I'm pretty sure ISPs routers and switches cant see above 7000 or so, hence why I use those higher ports
Also if for whatever reason ALL ports are blocked except certain ports, thats even easier, if I can pull up yahoo then port 80 is open for example, which can be used for everything just like every other port can...
In this particular case they want to use access lists (block lists, white lists) on those netgear routers. If a kid even has access to google or yahoo or anything else on the net they'll be able to bypass those when they want should the "want" arise, by just looking it up. This is common knowledge and WOW kids learn fast, I know I sure as heck did when I was young.
Slightly off topic but I was deep into all sorts of pay porno sites that I never paid a dime for when I was 13 shoot! Heck even made a few bucks selling other peoples credit cards from across the country (yeah I was BAD) and I wasn't even old enough to have one and I sure as heck wasn't a "Hacker" by any means, I just knew how to look for the information I wanted and I got it, still doable to this day
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Also worth asking though, how do they block the websites on those routers (i didnt read much into it)? www.thissitesnotrealbutitsnotforkids.com or 23.62.166.25 ?? theres always more than 1 address for a website (i didnt look in detail on how their access lists work but its worth noting i believe). Also with IPv6 becoming big now, there'll be longer addresses to be aware of with more numbers than 23.62.166.25 for example.
Thinking something is safe is the worst mistake that can be made. I do not yet have children but when I do, thank god I've been fooling around with computers for about 20yrs; thats been just enough time to realize NOTHING is safe, EVER, when it comes to a computer, I don't care who you are or what "security" you use, some 12yr old in russia has you outranked already. My 12yr olds computer... (when I have kids lol), is not going to be on the net PERIOD, he'll use MY PC right next to me so I can see what hes doing IF he has to use the net and I'll guide them on how to use it properly, like a responsible parent would do.
I'm pretty certain parents didn't let children wander freely back in the wild west in old times to go walking up and down dark alleys at night near brothels, bars, and criminals; letting your children wander freely on the net is just as bad and way more irresponsible. To trust a company, service, or security system to do your job for you just proves you already failed your main job.
I'm sorry if I'm making anyone feel paranoid, thats probably because you SHOULD be paranoid!
As my comparison above suggests, the net IS the modern day wild west, thats just how it works.
Geez, I rambled alot; yeah I'm sorry i didn't go into too much depth above with some of the details but i could sit here and type all night on IP addresses, access lists, and how a router is a joke to crack and bypass without anyone else knowing. But heed my warning, trust no one, when it comes to the net and your family.
I don't think parents should be paranoid, though – just informed, alert, and communicative. I completely agree that there is no such thing as 100% safe whether you're talking about a swimming pool, a city street, or even technology designed to protect online kids, and a false sense of security on parents' part is a mistake. 
