Systems are complex, so controlling an attack and achieving a desired level of damage may be harder than using physical weapons.

I think most organizations have an interest in key recovery, at least with respect to stored data.

The concern is over what will happen as strong encryption becomes commonplace with all digital communications and stored data. Right now the use of encryption isn't all that widespread, but that state of affairs is expected to change rapidly.

While the vast majority of hackers may be disinclined towards violence, it would only take a few to turn cyber terrorism into reality.

Cyber terrorism could also become more attractive as the real and virtual worlds become more closely coupled, with automobiles, appliances, and other devices attached to the Internet.

However, leaving everything to the market is not necessarily good for society.

I prefer leaving things to the market as much as possible.