I totally agree. Carrying out virtual world related research, I’ve recently had the experience of trying to use the internet in a US embargoed country (Cuba), and it is completely crippled from blocked services. Amazon bars all traffic, so many dependent services don’t work. Also Apple, so forget about trying to commission or update any apple device. Also Linden Labs, so in my case, forget about trying to work.
I’ve also had experience of domestic IPs in UK appearing to block different forms of traffic that threatened their other forms of revenue, i.e. BT and Virgin blocking VoIP.
If this goes ahead, it could also cripple crypto-currencies, as IPs could be instructed to sniff out and block all associated traffic.
In fact it could cripple any form of un-decryptable traffic. Just think about that.