If you ban Bitcoin, then Bitcoin will become forbidden fruit and people will want it even more in my opinion. This will just give a sign to the world that we are doing the right thing.
Not that I think a ban will ever happen, but who would want a form of money that can't be spent or accepted? Bitcoin isn't drugs. It's not fun or addictive or profitable regardless of legality. It serves a purpose. Banning it stifles that purpose and people will move on. They're not short of alternatives right now.
Agreed. The real issue is trying to really fight the case for Bitcoin being a serious alternative.