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As others have said, it is because pornography is considered "Acting". You are making a movie and acting out sex acts for entertainment purposes. Both actors are being paid, and the industry is being tested for STD's. Also, it can be taxed - therefore it is legal.
Prostitution would be difficult to tax, test, or regulate on a mass scale. Therefore, it remains illegal.
The other interesting question is: If prostitution is legalized and you are dissatisfied with the 'product' you purchased, what is your recourse? Do get a refund, discount, or do you call the Better Business Bureau? Wouldn't you love to sit on that help line!
Caller: Yes, I would like to report a problem with my prostitute.
BBB: What seems to be the problem?
Caller: Yes, well I asked for a tossed salad, followed by a shocker, followed by a good flogging. I didn't get my shocker, so I want a discount.....
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