+5, Insightful.
I think a lot of people got caught up on Bush and
Karl Rove, and missed the grander changes in American politics because of it. One of the things that troubles me in Italy is the backwards approach to the internet (the Google convictions stand out). That, mixed with ownership of broadcast media, has horrible implications for communication and public information. In America, everyone was so worried about war that a lot of other bad things happened underneath, like the PRO-IP act and the increasing corporatization of political power. We've got a privatized military FFS.
About the Rule of Law, this is the tiny little democratic value that no one ever thinks of. It's interesting, because it's the only thing that really holds any society together. One general changes his mind about his loyalty and ambition and convinces enough people to back him, you've got a coup. The president decides to expand his powers and no one fights him, it happens. One corrupt police chief violates someone's civil rights, and no one stops him, you might as well be living in anarchy.
As to your point about things working out: this is true. All the laws in the world will not change the minds of the people. If we ever get truly socialized medicine in America, it will work, and people will love it. No matter how many laws you pass to stop filesharing, the youth of the world will never really understand the importance of paying for bits (though you can convince them to buy quite a lot of other things). Culture will move to have the best technology available and live in the most sensible way possible, and laws
will eventually change to respect the culture. Lobbyists can get a lot done in the mean time, which is unfortunate, but at some point, there's no interest in living in the past, no interest in enforcing laws based on it, and no real political gain in legislating against progress.
One thing I find interesting, in regards to IP issues, is the complete misunderstanding of economics. In a competitive marketplace, prices inevitably shift towards the marginal cost of production. In the case of news, music, and movies, the marginal cost is effectively zero. Fight it all you want, but the iPad and the law will not get people to pay money in the long term for something which is effectively free. People will not buy music if their friends can replicate it for free. This is inevitable; market forces cannot be denied.