I agree that the larger Internet should be capable of routing lawful traffic through jurisdictions where such traffic is lawful to another jurisdiction where the traffic is lawful. But within a country for example local laws should be applied to the traffic.
There are two options here:
1) You can have an encrypted connection between two jurisdictions that have different laws, but then anyone can route around censorship because you don't know if they're discussing geopolitics or distributing DeCSS.
2) You can't have an encrypted connection between two jurisdictions that have different laws, which is >99% of all connections because even different cities have different laws, which is an Orwellian panopticon and the destruction of all privacy.
I'm going to have to insist we stick with the first one.