No. If I understand correctly, he meant that it is optimal for the miners to be in direct connection with each other and hence are able to get the new blocks the fastest. When a block is mined, the propagation of the block throughout the network can take quite sometime; potentially up to several seconds depending on your connection. If the propagation is this slow, the miner is losing on time to potentially mine on the next block.
I see, that makes a lot of sense. So the entities that actually mine the majority of the blocks have an additional advantage of being connected with fast connections, increasing their advantage (if only by a couple of seconds) over the rest of the network.
To prevent average users from sending their Bitcoin's transactions, the government should turn the whole Internet off.
There's really no way to enforce this, short of turning off the whole internet for the country.
Previous attempts to censor or limit the information or connections of citizens have always been bypassed easily. See China's Great Firewall.
... there is a high chance that any other person in a different part of the world starts to mine blocks (it becomes beneficial suddenly!). The bitcoin system would need some time to adopt to this new situation (adjusting blockheight etc), but would not fall.
These are all pretty reassuring facts. Thanks for taking the time to clear these things up.
