I must be missing something.
What's the point of an altcoin if it could be blocked by government anyway - I mean, you seemed to be saying earlier that the US government could pull the plug on the internet backbone if things got desperate enough for them?
I said it is much more likely they would just filter protocol of crypto-currency.
In the logic of escalation as needed, the threat of blackout I think would first be used to induce a country to comply.
See the distinction is the threat is something the national government can address by complying. Whereas, with the improvements I suggested, the government could not comply because the pools are anonymous.
If the powers-that-be blacked out a country that had tried to comply but couldn't possibly comply since technologically impossible, that would backfire.
You've given no incentive to comply with your lawgivers. Confiscation can be easily deterred by real world decoys. No hacker worth his salt will work for a dictator so their lackeys will be easily spoofed. Iron Gloves and Jack Boots are so 20th Century. Your criminal secret police will be exposed to the world and your trade will be tariffed, firewalled, or blockaded. Unless you can give a strong moral reason to regulate Bitcoin more than cash, you have no moral authority for your argument. Without moral authority, your people will rebel. America is already past that point and is shutting down. They don't even have the budget or manpower to shut down the criminal marijuana stores.