IMO, your hypothetical falls apart at the second point:
> Now gov mandate that all hardware must have have backdoors to circumvent those measures.
A government could legislate that it may not rain anywhere in the country on Tuesdays, but executing that isn't practicable. Likewise, backdooring one family of CPUs may be possible, but you can't simply tell chip fabs to backdoor each and every design. They'd grind to a halt in order to comply.
And I want to say that there exists provably un-backdoor-able "zero-knowledge" computing, something like Ethereum's smart contract ISA, but I may be misremembering.
In the end, our governments are democratic, we elect politicians to represent our will. They shouldn't be pushing for things like backdoors at all when no citizens are in favour. So yes,
> [...] we must push back against policies like this to prevent erosion of our values, do not "give them an inch" so to speak.
I agree that China is currently, to continue your metaphor, winning the fight against privacy—but only because using the government-friendly superapps is necessary for everyday life, and not because they've blocked the likes of Tor.
> you can't simply tell chip fabs to backdoor each and every design. They'd grind to a halt in order to comply.
Yes, it's supposed to be an unrealistically optimistic thought experiment, both in favour of the efficacy of technical solutions (ignoring the societal component) and government power (ignoring economic side-effects). It shows that technology alone cannot outmanoeuvre unchecked power, and so power must be kept in check.
In reality, there are multiple forces beyond legislation that naturally add friction, which you allude to... However governments can get very far before hitting those thresholds, especially if there is no pushback from the people. There is also the problem of compounding policies eroding democratic freedoms, that can allow for easier enactment of ever more extreme policies, even in spite of economic consequence. For instance this is the case with the GFW in China where workers no longer have access to the full wealth of information available on the wider internet to perform their jobs as effectively.
The ultimate point I'm trying to make here (and I think we are in agreement), is that as technologists we cannot simply bury our heads in our code, we must acknowledge that developing more resilient technology is only a single component, it is not sufficient. Supporting the fight against freedom eroding policies is necessary.
> Now gov mandate that all hardware must have have backdoors to circumvent those measures.
A government could legislate that it may not rain anywhere in the country on Tuesdays, but executing that isn't practicable. Likewise, backdooring one family of CPUs may be possible, but you can't simply tell chip fabs to backdoor each and every design. They'd grind to a halt in order to comply.
And I want to say that there exists provably un-backdoor-able "zero-knowledge" computing, something like Ethereum's smart contract ISA, but I may be misremembering.
In the end, our governments are democratic, we elect politicians to represent our will. They shouldn't be pushing for things like backdoors at all when no citizens are in favour. So yes,
> [...] we must push back against policies like this to prevent erosion of our values, do not "give them an inch" so to speak.
I agree that China is currently, to continue your metaphor, winning the fight against privacy—but only because using the government-friendly superapps is necessary for everyday life, and not because they've blocked the likes of Tor.