However if Government 20 and Citizen 2.0 hinge on web connectivity we need to do something to address the digital divide as it may quickly become the democratic deficit of the 2.0 era.

Absolutely. No matter what form Citizen 2.0 takes, universal internet access will be a requirement. I have a feeling that it may have to be implemented the way universal health care was implemented.

And I don't think the current government is likely to do this.