I think the threat of potential copyright suits by Hollywood and the recording industry makes it difficult for new businesses to compete. Small businesses simply won't bother to enter the fray or will fold at the first threat of a suit even when what they are doing is legal.
Walt Disney built an empire by taking public domain works like Cinderella and dressing them up with his imagination.
Politicians can best help . . . the internet community by staying out of the way. Politicians usually are a few steps behind society. When it comes to the internet, they are laps behind.
I'm confident that if the technical community were to help turn out Senator Hatch, 534 other people in Washington would pay closer attention to technology in the future.