It's a conspiracy theory.
Federally Funded Researchers Want To Scrap The Internet
Yes, the government is researching new networking technologies which could eventually be applied on the internet and replace some current protocols. But saying they want to "scrap the internet" is like seeing research into LEDs and saying the government wants to scrap electric lighting.
The projects echo moves we have previously reported on to clamp down on internet neutrality and even to designate a new form of the internet known as Internet 2.
"Internet 2" here (according to the site they link to) describes the hypothetical no-net-neutrality dystopia in which the Internet moves to a cable-TV-like model where the only sites that exist are those that have deals with ISPs to get connectivity. They seem to be confusing this with the real (and unrelated) Internet2, a partially government-funded consortium that runs an advanced research and education network and develops new technologies.
Google is just one of the major companies preparing for internet 2 by setting up hundreds of " server farms " through which eventually all our personal data - emails, documents, photographs, music, movies - will pass and reside.
And now they're confusing Internet 2 and Web 2.0, showing they probably don't understand the distinction between the Internet and the Web and have very little idea what they're talking about.
Basically the article's taking every new technology that might possibly change the internet in unknown ways, and every unimplemented proposal or suggestion for decreasing internet freedom, and conflating them all into a huge government conspiracy.