I’m not sure if ValleyWag has it right but I wouldn’t be suprised to hear that Google blocks what the goverment asks it to block. some things I can understand, defense systems and such. But to block entire countries? Thats going a bit too far. But you decide and tell me what you think here.
Update: I check the Microsoft live search site and behold, several small islands show up in areas that are blurred by Google. So at least in the case of Bahrain, the story is true.