I think that once any government starts regulating the Internet, they will start taxing everything, and turn it into a giant warehouse for buying products. This already started, but the Internet is an open marketplace. Once that ends, and it will only end with government intervention, the Internet will lose its appeal to the "anyone" publisher. The Internet had tax free goods until state and federal government started enacting commerce laws on Internet sales. So it wasn't enough to tax physical transactions, but virtual ones as well. Who knows how much this has set back the Internet's growth, you see? An unelected consortium of billionaires already control the Internet through some extent - but many of these individuals are programmers and intellectuals - so as it stands now, you could argue that the Internet is a meritocracy type of system. Once governments become involved in the regulation of the Internet, it ceases to be a free marketplace of ideas and more of a highly regulated media, much like television and radio. If you look at TV and radio, what has happened? A few media companies control the majority of everything you see and hear, at least in the U.S. This is why I would be against government regulation of the Internet. It will become draconian over time, and ruin what the Internet used to be: a place for research and free communication.
Remember, now the top usage of the Internet is now for e-mail, sex, and commerce. It used to be for research, discussion groups, education and self-improvement, friendship, and things like that.
To further my argument against regulation, under the Bush administration, the federal government tried so subpoena all of Google's search result records, with IP addresses. All of them. Google fought it. Microsoft and Yahoo! are rumored to have capitulated. So where is your right to privacy then? Shouldn't you have one on the Internet?