> the reality is every first world country's internet backbone is controlled by the state
We need to move beyond this. Some kind of world-wide mesh network would be great. Perhaps phones will become this one day.
If we don't, the internet as we know it today will be destroyed. Every country wants to impose its own laws on it. This will lead to a regionalization of the internet: each country will have its own.
> should information be allowed to flow freely?
Yes. If some information is not meant to flow freely, it shouldn't exist at all. Laws must be enforced before the data is created. Instead of making information illegal, target the activity that generates the information.