all that **** about internet filtering/monitoring gives me a real bad "jinx" feeling

so you mean that the system that is installed by my ISP is produced by this company http://www.netsweeper.com/
or you just giving example??

I am sure that your ISP could provide the government with all of the info it needs
Hell No
there are proxy's highly encryption algorithm.....etc
being a data transport doesn't mean you can know every thing