Whether Lessig's rhetoric was good or bad, I cannot say -- I wasn't there.
However ... he's quite right to point out that the decisions that matter are made in "LawyerLand": in court, in the US Congress, in the European institutions, etc. The philosophy that says, "just program -- laws can't hurt you" is just plain wrong. Laws can hurt you: there's the DMCA, the attack on P2P (including Berman's Bill), Hollings' Bill on "trusted computing", the current controversy in Europe on data retention, etc.
You can't just "program around" the law. People said that Napster was a top example of "programming around" the law, but the law caught up with Napster. Now, the law is chasing after the post-Napster P2P networks, and Hollywood wants to hack your PC. And if you break the DMCA, you could discover that you can't program yourself out of jail.
LawyerLand is the battlefield -- whether geeks like it or not. Don't shoot the messenger.
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