Yes, with red eyes and leprous sores 8)1. Sure. It's an arms race between geeks. But we know that certain technologies are very difficult to counter. Public key cryptography is an example. Algorithms can be developed that are like scrambling eggs. Easy to achieve, and highly improbable or computationally expensive to counter.  1.1. The first key thing is the diversity of networks. Let's say somehow SR is taken down. Well, then there's alternatives like BMR. Let's say TOR is taken down entirely. Well, then there's Freenet and others. Let's say Bitcoin is destroyed. The communities will simply flock to the next medium of exchange like a shoal of startled herring.Once the illusion that the government can track everybody and everything is dispelled, you cannot put the genie back into the box. It's now already far too late for that. To put it bluntly, there are too many people like you and me.  1.2. The second key thing is 'price'. Most things are technologically possible. In theory you can make computer software do anything you can imagine. In practice there are definite real world constraints. The government has a large checking account, but even that has definite limits. Even the genius expertise of the Stazi in East Germany and the technological sophistication of the Soviet military intelligence services using 50%+ of GDP of a superpower state could not prevent the fall of communism. Fighting markets, is an exercise in futility even for the smartest people on the planet. In some sense, the brainpower and computer power of LEO is not bigger than the organizational ability of the black market. It is positively diminutive in comparison. It's just not obvious that this is the case.  1.3. The third key thing is that there are many here and elsewhere I've seen who are busily at work on completely distributed systems which are far more formidable than our current incarnation of Silk Road and TOR.2. Sure. But even my ISP doesn't know me. In fact they think I'm somebody else. Deeper and deeper into the Rabbit Hole Alice! Some buyers and sellers are naive, but a goodly number of us are real professionals using many varied methods of camouflage that we don't necessarily describe on the Silk Road forums.Now, for the average user, it could be a problem. Not everybody can be behind "Over Nyan Thousand Proxies" after all. But I don't think we've hit a critical mass yet. General anonymity for geeks is one thing, generalized anonymity for the population is another. It's a problem, but not a serious one today.3. You have to have some evidence in the first place in order to setup arrest warrants. Let's say you have 'reasonable ground for suspicion that user X is using TOR for illegitimate purposes'. Your argument was that consistently high traffic would serve as grounds for monitoring in RL or arrest right? Well, that puts everybody operating exit nodes under watch and also anybody downloading/uploading data. Using email and websites is not data intensive, you'll be sweeping up dozens of users into the net for no reason. Judges notoriously dislike having their time wasted.Widespread key-logging on the other hand, that could be a problem. i.e. magic lantern antics. They can only achieve such a thing with 'defense of the realm' bullshit (patriot act), and whatever else we are, we're certainly not terrorists. Hell, you'll not find more fervent defenders of the western ideals of markets and democracy except for the Silk Road.4. Take a look at the TOR cloud project sometime.5. Probably. But let's face it, it's much easier to bust buyers than sellers. Then what do you have? Nothing. It's comparable to arresting the Johns to deter prostitution. You cannot bust large amounts of sellers. Sellers who take reasonable precautions never reveal their real world address. There is simply no reason for them to ever do so. It has to be taken on a case by case basis. It is an order of magnitude easier to bust sellers in RL. LEO loves large numbers. $XXX million in street value. over nyan thousand dealers off the streets. That kind of thing. Even if the Silk Road was the same size as the offline black market, it wouldn't attract more LEO resources in the long term.Let me say one thing that has probably already occurred to you. We expect to see a wave of 'moral panics' in the future regarding the Silk Road. That will attract attention and LEO resources for sure. But over time LEO will come to recognize the points I mentioned in 1.1, 1.2, 1.3. They will ultimately STFU and focus on offline interception activities because it's in their interest to do so. They are servants to what economists call the principal agent problem. It is not in their self interest to draw attention to the Silk Road, and they will justify this as 'not wanting the word to spread', but it'd be more accurate to state that they like feeling strong and not feeling weak. The illusion of invincibility is more important to LEO than actual results. That is why we recently heard of 'biggest multi-million dollar drug bust in 15 years' when in reality when you analyzed the situation you found that 10k of drugs and 10k in cash was actually discovered. Nonetheless, they handed down a century in prison to those amateurs to make themselves look better.