So I'm going to explain myself as I see you are meeting my point:
Why do we have to complain about regulations instead of implementing them, proactively, as you have noticed that some areas in these activities needs some ground rules? Basic, simple, sane rules.
I agree with you on Hillary's approach on this, and I'll add to that that most politicians taking on the task to solve this problem will only serve some limited group or perspective. They will almost always lack the insight concerning exploits, abuse, scams or difficulties caused by either unregulated or poorly regulated activities, and yet they will dictate the policies.

Just tell me one thing: what unregulated activity works well as is? No exploits, no abuse and no scamming...

While I agree with your freedom reflexes, instead of whining about any attempt to tackle a problem please be the one to say the sane solution(s). Because there are simple solutions. Not solving correctly our problems is what gives them the task of screwing it up. So it's our fault, not theirs.

I have a similar policy at work: there are a number of intranet and whitelisted internet sites and for the rest you use credentials. Intranet also contains a socialisation portal for mostly professional purposes. Also, every time you enter the credentials you see a notification that traffic is monitored. They have also blacklisted known malware sites and some potentially dangerous sites (such as the infamous sourceforge.com). In principle this is a reasonable policy, as a lot of attacks/infections come from willful disregard of good practices and rules.

All this policy is coupled with inability to install software (except from approved list in a software catalog) and the inability to use USB pen drives except for a couple of approved models.

Now, my local IT dept. has bent some of these rules for me and a few others that need special conditions, specified and justified: ability to install software on work laptop, special/separate internet access at the price of additional screening at a flexible rate. Correctly describing the policies, rules and exceptions and good management/collaboration for the purpose of ensuring reasonable productivity (my company does not produce IT - services or software) is what keep us both secure and in business.

.... so everything between 0 and 1 would be met with lukewarm success? That's a great way of ruining both Christmas and 8th of August ;).

How can it connect to Netflix with an unmodified NES? Maybe the cartridge is preloaded...