they got a court order and contacted the wallet company

With those companies you don't own anything, just have an IOU that the company may or may not honor in the future. Basically like a bank. Always manage your Bitcoin directly with your own private key that no company has.

you can not withdraw bitcoins AS PHYSICAL BITCOINS, cuz it just dont work that way.. bitcoins are quite simply 256 ZEROES AND ONES, thats it

There is no such thing as a Bitcoin, any more than a unicorn. The ledger just says that the address you control has X.X bitcoin in it. When you transfer Bitcoin to another address, nothing is sent, just the counts are adjusted. The private key and address is not the Bitcoin, since at the very least those can be copied. Those are just keys and addresses.

this would mean that now you have to manage your private key, i think.. which is no small task..

but i think it can be done.. to just pick a random private key.. convert that private key to a wallet address... move your bitcoin there.. and you keep your private key.. you manage your private key..

Modern practice is to generate the private key from a human-readable series of common words. The words give a lot of entropy (randomness) and you can generate multiple private keys from it (common practice is to move the Bitcoin from one address to another, for better privacy).

Governments figure out what Bitcoin is yours by tracing how you got it in the first place. Major services keep track of who buys it from them. The whole transaction trail is public.