There is more censorship on the Internet than ever. Many countries actively block content they deem inappropriate. Even Google and YouTube censor a lot of materials they believe people should not see. Of course, the NSA is also spying on people's Internet activities. Soon, there will be almost no freedom on the internet.
Internet freedom isn't on the decline. There are still laws to be followed, just as "in real life" such as no bullying or harassment. However, there is still plenty of freedom on the Internet to watch, say, speak and write whatever comes to mind. The difficulty is that the NSA will likely monitor online activities as evidenced by recent scandals outlying the national spy network's programs.