Is increased regulation in the Internet's future?

I was tempted to answer the question posed in the subject line with a simple, definitive "yes", but I realized I should probably elaborate a bit - after all, "yes" isn't much of a blog post. 

  The concept of identity has been intimately linked to the Internet since its beginnings - after all, computers have identities, users have identities, and all have to be managed as part of the Web.  We choose usernames and passwords and use them to manage our online identities; but a lack of a pervasive standardized identity management system like Microsoft's .net software (a la Identity 2.0) enables users to hide behind a layer of anonymity.  MrKewlD00D22 isn't afraid to speak his mind on the discussion board of his favorite science magazine, even if he is painfully shy in person.  PunkRockGrrl87 and MackDaddy00 chat online each day, but their real-life counterparts have never met.

However, as the lines between reality and virtual reality become more blurry, it seems identity is more of a sticky situation. Take for example the recent, very unfortunate story of a mother pretending to be a teenage boy on Myspace for the sole purpose of harassing one of her daughter's female classmates, which ultimately ended in the 13-year-old girl's suicide.  The mother had been facing up to 20 years in prison for conspiracy charges, but the conspiracy charges were thrown out and she now faces 1 year in jail and $300,000 fines for 3 misdemeanors.  This situation brings to light all sorts of regulatory issues around the Internet. For example, if one is to be held personally accountable to the Terms of Service on a site, then somehow their online identity must contain meaning that links to their real life.  And how many "teeth" do the Terms of Service have in terms of the law?  Do the same rules apply online as they do in real life? 

These are important questions, and are becoming even more important as future generations engage with and build upon the giant information monstrodome that is the Internet.  Frankly, I think the time for more regulation with regard to identity (and information veracity) is far past its due date.