Re your #16 - "since reasonable companies control the wired connections to the Muslim world - just flip the switch."
"Reasonable", eh?
Was it "reason" that prompted Google and MS to block any sites not approved by the Chicom Politbureau and turn internet bloggers and dissidents over to the Chinese KGB?
Does it bother their CEOs or stockholders in the least that the web users they ratted out who had crossed the communist party lines are probably having or have had their organs harvested?
I doubt it... the "Bottom line" is sacred, it seems, and whatever sacrifice - including human - it takes to maximize profits seems to be fair game to the big weblords.
So with all of the oil money that Saudi Arabia has to throw around and do it's "talking" for it, who's to say that it won't be US who end up being shut out of the WWW, huh?
And it'll be our own bloody "providers" who will flip said switch, too!
AFAIK, these companies need a license to operate their system in China. Part of that includes censoring websites via keyword and DoS to sites and people who are known to be involved against the government--they have to succumb under the Great Firewall of China.
Do I believe it's right? Absolutely not.
Obviously, there's enough of a market for Google and MS to advertise their wares, and the possibility of high profit compared to having to kowtow to the Communist Party of China just to operate seems a tad miniscule to these companies.