Now wait a minute, is this a law or a proposed law? If the former, they're complying. If the latter, they're having a hissy fit.
Well it seems like their trying to prevent a proposed law from becoming an actual law. Whether the threat is significant enough to warrant this action, I can't judge but it is a pretty effective form of protest, you have to admit, given that wikipedia is largely taken for granted these days.
Most people are too willfully ignorant about what goes on politically in their countries, and it's only when they are personally affected that they take a stand in the matter. Other sites should have joined in and made it apparent to all italian internet users the effects this law might have on their web experience.
If anything the Google case should make it clear that it's not a safe bargain to simply ignore these types of issues.