We are already there and have been for a long time. Geoblocking is very common for low-effort DRM and abuse mitigation, common VPN providers are easy to detect by IP but generally frustrate and/or ignore abuse reporting (until serious illegal activity is committed), college and other institutional networks are often no better than VPNs in this regard, etc. The Internet hasn't been able to operate as a network of peers at least since it was opened up to the public.