I think this has been blown a little out of proportion. I haven't actually heard of any other .ly domains that this has happened to.

No, I haven't neither. I'm not saying don't register any .ly or .by or whatever domain, I'm just saying be cautious. (See my other post with "legal actions".)

As if democracy is the property which reveals whether the government employees are good or corrupt.

Right, but even if there are corrupt government employees and you are discriminated by the government (employees), you have always the option to take legal actions.

In some countries you can't take legal actions that easy, especially against the government.

Here's another example (coincidentally it's Belarus again): http://snarkerati.com/tv-news/belarus-big-bang-theory-rip-of...