That's true, but that never stopped governments from regulating and controlling them and shutting down big drug operations. I don't see why they wouldn't attempt to do the same with "illegal" data (even if data is orders of magnitude less traceable).
I'm afraid that the mere fact that all data has a physical starting point is enough for governments to try and claim jurisdiction.
Most people seem to be fine with schedule I drug prohibition. Then again, data is the one drug that we're all addicted to.
They do. Warez/Pedophilia/Drugs/Exploit sites are regularly shutdown and seized by the police.
It's just not possible for Google/Amazon/Facebook. The police ain't gonna go there, seize the datacenters, in a simultaneous operations where they arrest and charge the 1000 people at their national HQ office at the same time.
Most data on the web is sent through so many servers and cached and archived in so many places around the world that it makes no sense trying to tie it to a single locality.