It's good the EU is not just rolling over and playing dead, but the consequences of this battle could turn Shrub's "Internets" screw-up into a prophetic vision. At issue is the control of domain name servers.
If the US and the rest of the world essentially split on this issue, "the Internet" will no longer exist. You'll have nationally or regionally controlled internets with no direct pathways between them. The address
www.foo.com in the US would point to one server while the same address in England might point to another.
The real problem here is that the international community is sick and tired of having the United States, under Shrub, dictate to it what the standards are. Discussion of the war in Iraq has invaded these technological discussions, which is the kind of subject that is unprecedented at these sorts of conferences. US foreign policy is bearing fruit. Even if the subjects aren't directly related, every point of contention between the US and other nations is being dictated by our strong-arm tactics in the Middle East.
Al Gore may not have invented the Internet, but the Shrub could well kill it. My main concern at this point is that this is exactly what he and his cronies want, that "the Internets" comment was less ignorance than foreshadowing.
We can cheer the EU all we want and feel good about it, but for those of us who have come to rely on easy and quick international communication via the Internet, we had better hope some sort of compromise is possible.