Shouldn't having a "Mad Despot" also be a requirement? Both Island and Greenland are on the list, but are both democratic. They probably have few internet providers because they are so small. Greenland has a population of 56K. Iceland 320K and almost all live in the same city.
I don't think the map relates to the "Mad Despot", and I think it's only about risk of disconnection (including accidental disconnection). I was shocked to see Portugal there at first, but I guess they have transatlantic cables to USA or maybe to UK and not much to mainland / Spain, and that's why they are low risk. Original's Renesys (the map creator) here: http://www.renesys.com/blog/2012/11/could-it-happen-in-your…
I had a quick look at the link you provided, it has to do with the amount of national communication providers really route the traffic across borders.
Since most of the traffic goes over Portugal Telecom, switching them off, would already cut most of the traffic I imagine. Specially because they also own most of the internal cabling, even when the service is offered by other companies.