John Gilmore's quote was always an oversimplification. The net itself doesn't do anything but move packets. The people that use the net are the ones that find ways over, under, and around censorship. And this is censorship. We can argue about whether or not it's justified (and in the case of websites selling Chanel knockoffs as the real thing, it might be) but the fact the ICE and DHS have exerted control over ICANN is not good.
I'm a US citizen, born and raised here. The prospect of my government having the power to control the web scares me shitless. It's time to start working on a decentralized, cryptographically sound successor to DNS. It's also time to get serious about IPv6 and IPSec (encryption at the network layer) as a way to foil deep packet inspection.