I'm not suggesting it prevents regulation in-and-of itself, but that it will make federal regulation untenable by breaking down the misconception that computer networking is necessarily geospatially agnostic.

If local communities have their own physical networks running internal services, and if average people start using them, I think they'll start seeing computer networks as able to be more than one homogenous cyberspace. Federal regulation doesn't seem so out-of-place when your connections are presumably going all over the world. But if you drop that assumption, I think smaller governments will want autonomy.

(I also want to apoligize for my tone above. Not necessary and not conducive to conversation.)