Will "Public" internet surfing be crucified?

The latest article on Businessweek talks on the crackdown on Cybercafes in India. It seems that the govt. in Maharashtra, Goa, Gujarat and Haryana have started to implement measures like loads of licensing requirement and permits to make life miserable for the Cyber cafe owners. At the same time there is increased onus on the owners to follow Know Your customer (KYC) norms . This all is being done under the pretext of "prevention of terrorist activities" as well as prevention of "pornography". I am not convinced by the logic here. What terorist activities are we refering to? IS it 'mails" being sent from these cybercafes by terrorist organisations caliming responsibility for activities? Shouldnt we be focussing on stopping the activity rather than the post facto "claiming' peice? Or are we referring to the "cyber" frauds? Wouldnt a cyber fraudster use much more sophiscticated means like dynamic Ip and Masking from a personal PC and a high speed personal connection rather than the snail pace of Cybercafes? And with mobile Internet making its way do we really think cracking down on cyberCafes stops Pornography? Today the highest amount of Pornography is in the form of MMS clips and images -- so do we next ask the Mobile operators to switch off the MMS option? I believe this is the same battle which music companies fought against piracy (and finally came to terms with thru iTunes model),the same battle being fought with Blackberry by the govt. Its about time that people realised from these battles that by its nature internet is ubiquitous, "location" independent and hence untraceable. So either you ban it or learn to live with it.
The article hypothesises that this could be a move to aid prroliferation of internet at home!!! Well I think the later is giving too much credit to governments thouhtfullness.
However one interesting fact is that we do notice around me cybercafes do seem to be on the downfall. They have surely dwindled from the hay old days in the early part of the century when there were more cybercafes than PCO's and even then you couldnt find a seat. This is partly driven by redcued craze for "chat rooms" and loss of novelty factor. But it is also driven by the disruption of the business model of these cybercafes. Typically these cafes operated on pirated softwares and a single 64 kbps link used for 10 terminals. However with new licensing norms they can no longer use pirated softwares. At the same time the shooting cost of real estate coupled with lowering of tariffs driven and need for higher speeds for todays casual surfing needs (youtube and downloads vs chats and mail) means they are being boxed from all ends. So will we see the end of "public" surfing? Where does this pitch the plans of Reliance webworlds and other "organised" Cybercafe chains?
In my view the Cybercafe as we know them today - both in size, ambience and utility will die. What will emerge though are "Media Immersion Pods"(MIP) so common in Japan though at different degrees. The MIPs in Japan serve are Cubicles with complete privacy and serve as "Nirvana" space wherein can download music, read novels, watch pornography, play video games, have sex, go to sleep. In fact they have a "night pack" allows use of the pod from 11 p.m. to 8 a.m. for about $10; some places sell toothbrushes and underwear too. Periodically the management needs to remind a customer that the cafe is not a hotel, but above all MIPs respects people's privacy. Though MIP's in Japan are the extreme end (just like other things in Japan telecom e.g. mobile boradband) the MIP's in India too will map them to an extent. Some day Indian cybercafes in MIP avtaar could offer the following services -

• Act as Hotspots for wireless BB connectivity on personal Mobile BB devices, maybe for free with some kind of click ad model paying for this cost
• Act as Gaming Zones for hard core high end '3D immersive" gaming - imagine having Wii terminals and gamers slugging out.
• Act as high end collaboration sites acting as "Public Telepresence rooms" used for "Coaching" for learning a myraid things from Yoga to languages to Karate from remote (maybe another continent)"trainers" or simply the international friends "handout adda"
• Locations for specific downloads like iTunes and eBooks
• A movie parlour wherein you obtain a code to watch streaming movies on home comp

The possibilities are unlimited. Chuck the "terrorist threats", the verdict is out "Cybercafes will be crucified- MIP's will emerge" long live Web 3.0!!!