Germany has strict laws against selling stuff and having other stuff related to Nazis. Ebay had a lot of problems with trying to regulate which sales showed up in their branded pages there to make sure they avoided those "offending" items. I think Ebay took those to court to get it defined there too better for themselves.
Bottom line is that it sounds like Google at least is trying to make a conscious effort in respecting the *laws* that exist in each country it's operating in. The reason they are fighting the government here is that they believe that the government isn't following it's own laws in trying to force information from it.
If the laws don't exist to protect against censorship, like they likely don't in China, then they have a choice of either not offering service there at all or obeying their laws.
I can't really swear off Yahoo, since I actually work there, but that doesn't make me unconcerned about what this government has been trying to do to my company and Google in scary ways!
Check this earlier thread I launched that was concerned with what might have been censorship for this administration earlier on Google. Even if this was in fact some act of manipulation and censorship, which by no means is "proven" by my concerns of various connected circumstances, I still feel that the higher levels of Google management are likely not tolerant of this sort of thing if it did happen, and perhaps it got "internally policed", since these symptoms don't exist any more. Google for me is still an invaluable tool!
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=364&topic_id=39220