So their response to prostitution and bloody fights was sax and violins?

I'd hope that rather than teaching the next generation to be EVEN MORE PASSIVE, that this would instead activate the "build a better mousetrap" gene and that the next generation would design and builda a product to put this generation out of business tout de suite.

There is a natural tendency to be hamstrung by familiarity. "Since the current internet is monolithic, any future internet must also be monolithic." I suspect that in order to actually create truly secure pockets for power grid management, financial data and so forth, new infrastructures will have to be deployed in parallel to the existing network, not replacing it wholesale. Over time Internet 1.0/2.0/X.0 may or may not be supplanted as the most popular public network by a new upstart. At the same time, different communities and entities will create systems that work for them in terms of security, privacy, speed, etc, and mirror appropriate information in a controlled manner to other networks as needed. What is lost in efficiency will be compensated in flexibility and robustness.

This is just what I think is most likely, not some cause that I'm emotionally invested in. It just seems to fit trends we've seen before (which, as I mentioned in my first sentence, should be considered suspect as a matter of course.)