The original "lessons" that were in each morning and afternoon series such as GI Joe, MASK, Thundercats and Centuarians was originally inspired by this act. The whole intent was originally, as you may have guessed, to give childern good TV Material to watch. This all came about under Bush 41. This bill gave A LOT of power to the FCC.
During the Clinton Era, the FCC reformated A LOT of the rules so that child friendly was loosely translated as "Good always defeats evil". Further more, Clinton gave some HUGE tax incentives to networks broadcasting 'child friendly programming' within certain time frames. Loosely, IIR, Weekdays from 6-8 and 3-5 (4 hours a day) and Saturdays from 8-12. This tax credit was EXTENDED to cable networks as well. As many well know, the FCC doesn't have direct control over cable, but as is with all things government, they can entice them with money.
Enter the Bush 43 era: Bush rolled back most if not all the tax credits for these air times. Further, the FCC under Michael Powell greatly increased the requirements for "Child friendly programming". Its been suggested that Bush 43 felt that he was trying to correct the intended direction of Bush 41's original push for 'child friendly programming'. Based on the requirements, the only thing that really fit the new requirements was comatosed Barney.
Since the major networks no longer had a strong finical reason to stay in the game and literally would have had to get ALL NEW programming before the execution date, virtually all the networks immediately dropped their programming in leu of something that specifically didn't cater towards the cited age groups.
Thats the basic gist of what happened.