Folks, I'm surpised you can't see what's happening here. It's the usual UK government combination of (a) thought control, (b) incompetence, and (c) cowardice.
The thought control aspect is clear. There is NO difference between "expressing unpopular views" and "encouraging hatered". If you have the unpopular view that homosexuals go to hell forever, then ipso facto expressing these views might lead people to dislike homoseuxals, and therefore you are "encouraging hatered".
So having the power to stop people who "encourage hatered" IS nothing less than the ability to shut up anybody you disagree with. This is the power the UK government, in stages, is aiming to achieve. It's the same goal as the "hate speech" laws: thought control as a legal government right. As a caller on the BBC World's Service last night noted: "there are tens of millions of racists, antisemites, and homophobes in the world; should the UK make a list of them all?" I'm pretty sure the UK government's beaurocrats would if they could.
The REAL distinction that should be the limit of free speech is NOT whether the speech "encourages hatered", but whether it is likely to lead to immediate violence (the "shouting fire in the crowded theatre" test). Some of the guys on this list do fit this category, but the majority of them clearly don't. Most of them are guilty of nothing more than being jerks (e.g., Savage and Phelps.)
Second, incompetence: it is merely a huge boost to these guys' popularity, making them martyrs and victims. As every producer knew, "Banned in Paris!" is the #1 crowd-attractor; indeed, some deliberately did things to get their show banned in other countries to encourage their popularity in the USA.
These guys should all send a big "thank you" note to the UK government. (Phelps and his daughter, on the BBC world service last night, expressed just this "Thanks, UK!" view, by the way.) It increased their visibility a thousandfold, helping them recruit more people to their hate campaigns. So much for "fighting hatered" or "shaming" the shameless. But of course, that was never the UK's government's real goal.
Third, cowardice. Who are the people in the list? Well, SOME of the actually ARE terrorists, or members of terrorist organizations, or people whose words DO encourage people not to merely dislike or hate some group, but to actively, now, commit violence against it. To nobody's particular surprise, THESE guys are all, or almost all (perhaps the neo-nazi or the Jewish extremists also fit the bill, though I doubt it) -- you guessed it - Islamic preachers.
The UK, I think, wants to fight terrorism by not letting thugs who contantly DO shout fire to encourage immediate violence against infidels and (especially) Jews, or actually are members of organizations already committing such violence. But it is cowardly: it is afraid that if it bans THOSE people, who are 98% Muslims, it will be screamed at by the usual whiney charges of "Islamophobia" and "targeting populations". It doesn't make Islam look like the "religion of peace" we all know it really is that its preachers constantly and embarrasingly dominate the "world's most violent and hateful schmucks" list.
So what does the UK government do? It bans these guys, as it should -- but, to hide its actual goal, it also finds somebody -- ANYBODY -- from some other religion or political philosophy (e.g., Savage, Phelps, designated neo-nazi, etc.) and bans them too, even if THEY did nothing more than being jerks, so that people won't say it "targets Muslims". It also, by the way, does not release six of the names of those banned. I'll bet a large some of money those guys, too, are Muslims -- but that releasing their names will make the list too clearly the "Muslim preacher-terrorists + designated non-Muslim fig leaves" which it obviously is.
In sum, the UK took a worthwhile goal -- fighting terror by not letting terrorists into the country -- and made it into a thought-control incompetent witch-hunt out of a desire not to offend the designated victim group du jour (Islamists). On second though, perhaps it's not a incompetent as I think -- the UK government obviously thinks thought control is a GOOD thing.