Law and Order

As this may not be world wide front page news I may as well give some short background:
In the middle of last week the Swedish police made a raid on a torrent-server called The Pirate Bay. The police took a bunch of servers thus putting The Pirate Bay out of action, and also crippling a number of other companies with websites on those particular servers. Probably as a kind of retaliation computer users around Sweden caused a number of official websites to drown under accessability-pressure, among others the police and the government. This they haven't been too happy about.

Now, here's my question. Should cyberspace really work under national laws? In a way this cyber-protest was not all that much different from that of french farmers blocking roads with tomatoes or apples, only in this case it was band width and not physical roads. As the internet has developed much without the control of national legislation (yes, I am aware of CERN and US military), why should governments act now when cyber space somehow is beyond territorial limits.