Totally agreed. A couple more things that complicate it are that most of the people in power don't have a good understanding of the technology and its implicat

Totally agreed. A couple more things that complicate it are that most of the people in power don't have a good understanding of the technology and its implications -- and that the media is one of the special interests here, and so is very selective in its coverage. And as somebody who's thinking of doing social network startup, this kind of discussion is very very relevant to my technology and entrepreneurial worlds. Do I need to plan from the beginning to host outside the US -- and if so what countries make sense? what level of business risk are investors willing to tolerate, and is that changing? and so on.