China has done this with their Great Firewall and web firms such as Baidu (search engine), QQ (like Facebook), Weibo (like Twitter), etc. I believe EU and Russia also have the capability to do the same if they want to. For the rest of the world, they can license a copy from one of the three and host their own server farms.
This is not a bright future to have though: the Internet would become an actual inter-net among a few huge LANs.
But the rest of the world is pretty dependent on the US when it comes to the internet. This include the EU and Russia. And this is not something that is trivial to change.
I am not saying that it WON'T change... I'm saying that for the rest of the world to create a China-like internet for their citizens may be desirable, but it won't be easy.
I mean... if I was Brazilian, I would much rather the Brazilian Government watched my internet usage than to have the American Government do so. Because the American Government can put you on a No-Fly list and you have no recourse. (ie - no rights in US Courts). Consequently, you have no easy way off of that list.
So I understand the desire... I just think it will be more difficult than flipping a switch.
The American government could put you on a No-Fly list, but your own government could put you in a cage.
So can the American Government.
The difference is...
if your own Government puts you in a cage...
you actually have rights.
I'm not saying America in this case isn't a threat, it is abstractly, but it can also be the lesser evil.
/sarcasm