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Mostly that I think this is an opportunity for them to take the lead. The internet is today's big thing. It is defining a generation and the economy. Obama could get out ahead, be bold, and lead, pushing the American ideals of free speech, and free enterprise. Net neutrality, and a lack of censorship are extremely important, and will decide the course of history. He should be out ahead of this.
But he isn't so much.
It's an election year and the MPAA and RIAA have out-lobbied Silicon Valley by a factor of approximately 1500%. If you're the president and your approval rating is somewhere south of "Iran Hostage Crisis" Carter, it doesn't matter what whackadoos you're up against - you let this die quietly so they can't run endless clips about you killing jobs in Alabama.
Besides which, as with all young Democrats, Obama has a fascination with all things clandestine and techy. Internet blocks are the kind of Inspector Gadget stuff that always turns their crank (see: UAVs).