To be fair, they may have to specifically mention the 'racy' channels in order to warn parents that may be thinking of buying one for their children, though there probably should/ought to be a parental lock control for adult channels provided as part of this software.
As for the channel choice, it has been suggested that the majority of available channels are Chinese ones - which may actually be a good thing for some people - and the choice is essentially restricted to those channels that have free streams available, plus channel choice can vary over time especially if certain video streams of dubious legality are being used. Expecting to be able to watch all the sport and movies you can get on an expensive Sky subscription would be a huge mistake (and something for the ASA/Trading Standards to consider), though it is true that certain European channels available to watch online may be showing sport free of charge that's only available on a pay-TV channel in the UK (eg. football matches and Formula 1) and it's not illegal to watch them in the UK for private use, but that state of affairs may not continue forever.