Good article, which basically says our policies are based more on fear than on reality.

On cyber-terrorism:

So why is there so much concern about “cyber-terrorism”? Answering a question with a question: who frames the debate? Much of the data are gathered by ultra-secretive government agencies—which need to justify their own existence—and cyber-security companies—which derive commercial benefits from popular anxiety. Journalists do not help. Gloomy scenarios and speculations about cyber-Armaggedon draw attention, even if they are relatively short on facts.

Politicians, too, deserve some blame, as they are usually quick to draw parallels between cyber-terrorism and conventional terrorism—often for geopolitical convenience—while glossing over the vast differences that make military metaphors inappropriate. In particular, cyber-terrorism is anonymous, decentralized, and even more detached than ordinary terrorism from physical locations. Cyber-terrorists do not need to hide in caves or failed states; “cyber-squads” typically reside in multiple geographic locations, which tend to be urban and well-connected to the global communications grid. Some might still argue that state sponsorship (or mere toleration) of cyber-terrorism could be treated as casus belli, but we are yet to see a significant instance of cyber-terrorists colluding with governments. All of this makes talk of large-scale retaliation impractical, if not irresponsible, but also understandable if one is trying to attract attention.

Much of the cyber-security problem, then, seems to be exaggerated: the economy is not about to be brought down, data and networks can be secured, and terrorists do not have the upper hand.