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At least constitutionally, the 4th amendment (unlawful search) and "innocent until proven guilty" would mean blocking if _known_ illegal traffic.

Yes, granted, those rights are often infringed upon, especially in tech.

And police seizures. And airport/border guard.

And the NSA, FISA courts, Patriot Act... the list of 4th amendment infringements goes on and on.

I agree so heartily. The tired trope endures: do we really want the innovations of the DMV applied to the Internet?

Is there a country that is regulating Internet in existence that is doing anything that we'd consider positive?

If electricity, gas and water were not regulated, we would be outraged about that too.