Our network is roughly 100PCs, a few servers, etc. Most of it on one site.
Only users with business reasons get access to the Internet (on work PCs - we have 2 PCs in the canteen for personal use). Nobody is allowed hacking, violent, porn, tasteless, etc. as I prefer prevention to cure, and it aligns with the dignity at work policy. Anything that steals bandwidth (radio, video) is also restricted.
Approved users are grouped into low, medium, high.
Low only allows access to industry-related sites, the weather, education, and online phonebooks.
Medium is as above, plus research, business, marketing, news, IT, travel, vehicles, government, health, etc.
High is as above, plus shopping, social, sports, entertainment, etc.
The canteen PCs are even higher, but still don't get the potentially dodgy categories. These are the only PCs allowed access to web-based email (they are easy to rebuild!).
There is also a "tight" group restricted to a handful of specified websites rather than the preset categories. This is mostly for the manual worker areas where tracing abusers is more difficult due to shared logins!
The IT dept has the most open access (excluding porn, etc), but it is a small team that knows I'll pounce on them if they took the mickey with the trust given them!
A recent survey around heads of departments and directors asked if the filters were too tight or too loose. They all said they were about right, so no changes required.
I think the provision of the canteen PCs deals nicely with any gripes from staff about the restrictions, and also gives a free service to our manual workers who don't even have a business PC.