Step one: Procure whatever hardware necessary to force difficulty to continue increasing.
Step two: Wait until the power requirements for running a mining setup from a single family dwelling becomes next to impossible.
Step three: Mop up any remaining centralized mining facilities through either taking them over in the name of national security or bombing it into the stone age.
Step four: Profit.
I wouldn't doubt that the NSA already has this kind of scheme cooked up and ready to deploy.
Well, as far as power requirements go, they would have to push things beyond 400 amps (88,000 watss; 88KW) before things would affect me.
I kinda doubt that will happen but you do have an intersting hypothesis.
My $.02.
That's certinaly a lot of power you are using and not counting others who are mining with amazing machines it would take too much money to defeat Bitcoin this way.
I am not using all the power yet but also have two other rent-free locations with the same 400 amp incoming.
I intend to use up at least 85% of the available incoming with scryptcoin mining rigs, both for myself and my corporation.
Most single family dwelling built in the last 10 years or so have 200A services and strata complex units are usually 100A services. With that being said its not hard to still find 60A services.
In any event the typical distributed miner is going to need to have some kind of balance in his life for other things besides mining. So lets say the family is fine with the miner dedicating a room for mining hardware and lets assume that this room has its very own 15A breaker.
Assuming a power factor of 1, a 15A breaker will allow you to draw 1.8kW of power which translates to roughly 1TH/s of mining hardware.
With a constantly increasing difficulty, come May or June, you will need around 1TH/s of hardware in order to earn 1BTC/month.
In a nutshell, miners will increasingly be faced with the decision to either move to centralized mining or become a professional miner and start making plans to build a server room.
Once enough mining becomes centralized, taking over or destroying these centralized facilities is like shooting fish in a barrel for any government that has decent skills at subversion.
Like some of the prior posts state I believe that other crypto-currencies are the only way to ensure that mining stays distributed and healthy.
When we see things going south with one crypto-currency just move all your coins to the next one.