"That we should embrace the China/Russia model and give not only every country but also every state/province/city its own Great Firewall?"

I actually don't have much of an opinion about what it should be, I was only discussing this from a descriptive legal standpoint. My guess is what will happen is companies will voluntarily target their sites to different regions and different legal regimes (like many big US sites do for their foreign versions, or gambling sites do here). That's kind of what's happening here, Verisign is complying probably so they can still have the TX market.