[chopsueyar]

Except is has nothing to do with physical objects, only bits and oscillating electrons.

[nitrogen]

The analogy holds because governments are trying to apply notions (such as national borders) derived from a physically-constrained world of isolation to the unconstrained, connected virtual world.

[chopsueyar]

This virtual world you speak of requires a physical medium of transfer.

Let us not forget all that physical hardware is somewhere and somebody's electrical infrastructure is powering it.

OSI - Level 1.