I see this as awful for "real-world" because of the privacy concerns. Think Amazon won't analyze the heck out of that traffic? Uhh.

Also, before, gov't would need to install wiretapping stuff at central offices. With this, Amazon or whatever SPDY provider could just let them have "virtual wiretaps" which I'm sure won't be abused.

From an engineering standpoint, this is cool, but I can't see how this would function without introducing way worse privacy problems. In a world where we'll most likely need to rely on a decentralized Internet that is impossible to regulate, this is a step in the wrong direction.

The "SPDY gateway" is in no different a role than the "last mile" ISP. In fact, your SPDY gateway may for all intents and purpose be your ISP; or your ISP may offer an SPDY gateway.