From TFA (and I live in Cleveland as well), the 5,800 tons number is from a 15,000 household pilot program. The $2.5 million cost is for extending the program to cover ~150k households. Me thinks your maths are a bit off.

Your network admins fail if they think controlling internet access through DNS entries alone will keep you caged.

Are you kidding me? Perhaps for the /. crowd, but what about the average Facebook wielding user? Almost every "application" on the site states that you are forsaking your own privacy and that of your "friends." Those requirements don't stop many from agreeing to the terms of use. The average user doesn't even think of privacy.

If the share is indexed, Windows Search 4.0 will query the index on the remote server. Here is a link to the admin documentation with more information: http://technet.microsoft.com/en-us/library/cc772446(WS.10).aspx