I have no doubt that I could navigate a world without the internet and GPS, because I did for half my life. And I suspect shipping goods to consumers would be hindered, but have we gotten to the point where shippers and receivers couldn't work it out by phone? Would the phone networks survive? I know the landline system is a shadow of its former self, but would it suffice?
It's popular to say that the internet has created a new economy, but the underlying realities haven't changed. People need food, shelter, clothing, transportation. I think we could deliver that without the internet, though it would be painful. All the doom-saying otherwise just seems hyperbolic to me, though.
I think we'd probably see each individual nation end up as a pocket in such an event. It depends on what we associate to be 'the internet' but we've seen massive botnets in the last few years that could cripple countries just by themselves.
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