Ouch. They're pretty big, but blocking certain countries and persons just doesn't read well with the foss philosophy.
If they can't work around the issue there'll probably be a successor soon.
"there'll probably be a successor soon"? I don't know about you, but I've been using alternative services for years. The time for successors has already passed.
A project I work on, Android on Freerunner, ran into this issue with Google Code a while back. We had a user in iran who was unable to access our project because Google was blocking access from their country. It seems that the only alternative is to host your project on a site located outside the US.