Guys, how is this any different than "cloud" computing, or "cluster" computing, or pretty much the overwhelming majority of technical terms. Zip, unzip, explode, compress... yes, if I stopped and thought about it, I'd probably consider it perverted. And cloud computing doesn't mean we're all hovering above our cubes playing magical harps. Getting hungup on terminology is neither productive nor interesting.
The term "cyberspace" may be stupid, but it refers to something that is very real: The internet may just be a collection of wires, boxes with circuit boards in it, and a lot of ones and zeroes, but that is not how people look at it, anymore than they look at their car as a collection of fiberglass, steel bolts, and rubber. And the problems of the digital world aren't terribly hard to comprehend, nor do most of them require radical change in how we think about it.
Those of us under the age of 40 can conceptualize this "brave new world" quite well, and make moral and ethical decisions about it. Most of us understand and agree that privacy is a right, online and off. We may disagree about the particulars, but not the substance. Same with file sharing: Most of us are against people "pirating" for profit, but likewise have little objection to Joe Average maintaining his own personal collection of downloaded music and movies. This isn't hard for us to understand.
However, for people who grew up without computers, and are reluctant to embrace them, and still carry around Nokia phones from ten years ago because it's "more like a phone"... well, those people are more easily swayed by certain wealthy interests to look at it as a confusing and nebulous thing, and turn to said interests for guidance. Afterall... if you're rich, you must have done something right. There is a disconnect between our legislators (most of whom are 50+ years of age) and the general population (median age: 35).
The problems of "cyberspace" actually has nothing to do with technology: It has to do with people. Specifically, old people. Boomers. These people have taken an unwarranted familiarity with the technology and made bad decision after bad decision, institutionalizing ignorance and stupidity because that's what they were told to do. And that, really, is the only problem here.