I don't consider what the OP said as a threat to bitcoin because the internet is not only important for bitcoin but important for the whole world. Up to the present time, most of our professions, jobs as well as our daily living needs need the internet. Without the internet, our world would go back to the stone age, and it would take us thousands of years to rebuild from scratch without the internet. I don't believe that just because the government wants to destroy bitcoin, the government makes that stupid decision. I'm not really worried about that at all.
Turning off the internet is obviously not an option for a government only to stop Bitcoin or other cryptocurrencies from prospering within a country or a region. As you said, almost every single thing these days require the internet as we are living in a digital world and there is technology in almost everything that we use in our daily lives apart from all the businesses and industries.
Also, traditional financial institutions that are banks, can't operate without the Internet as well, and I don't think that a government would want the banks to shut down or start using only papers and landlines for all their operations which isn't possible at all.