I think the point here is not necessarily that government can do a good job, but that at this point, no one is stepping up to address these types of issues. Once you have a couple of major ISP that gets on board to assist in preventing this kind of activity, the discussion of the government needing to intervene is moot. Just the threat of another bureaucratic layer should give the service providers ample incentive to develop their own solutions to the problems at hand.
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Link to this comment: http://www.securityfocus.com/comments/newsbriefs/526/1985#1985