Question: Who wants to work for a government that locks up its citizens for using TrueCrypt or exploring around, as the hackers they have now grew up? It seems to me that they have cut off their "user base" from the very thing it requires to exist.
This is why the EFF came into being in the early 90s.
Here's a link to Sterling's book, the Hacker Crackdown[1]. He talks about the early, early EFF. It really reminds me of today.