What is going on is that reality is slapping some techno-utopians in the face and they are shocked, shocked, that governments are more powerful that businesses.

That's not at all what the lefty geeks learned by reading Chomsky or what the righty geeks learned by reading Heinlein.

All along these people thought algorithms and protocols (e.g. bitcoin and TCP/IP) would somehow be a powerful force that would cause governments to fall on their knees and let people evade government control. After all, it's distributed! You can't stop it!

Well, that was all very foolish, because they mistook government uninterest in something for the equivalent of government being powerless to control it, and when governments did start taking an interest in something, it turns out that protocols and algorithms are no defense against the realities of political power. It is to the field of politics, and not the field of technology, that one must turn in order to increase collective freedoms. Individual freedom can be increased by obtaining money or making lots of friends, but collective freedom cannot be increased this way, it can only be increased by organizing and influencing government.