This is taking quite a scary turn, but not, I think, in the direction that the governments are intending. Rather than intimidate people into silence they are actively creating a movement of people who are abhorred and appalled by these tactics. Kick that dog enough times and you're going to create an organized movement that can fight back. This is how unrest happens.

What I don't think they realize is that the dog they're kicking is also the most technically capable one on the planet. They're not poking Al Qaeda with a stick, they're poking every programmer and hacker who cares about privacy with a stick. While they may have unlimited financial resources, I would pit unlimited technical resources and creativity against that any day of the week. If they manage to create an organized group of highly technical opposition I think they're going to be very surprised by how capable it is.