Yeah they also have prison time for weed over there and are pretty harsh on it but people still use weed. I think the news is bullish as it shows the reasons why we need bitcoin in the first place. I know BTC-e has blocked russians so it must be pretty serious though.
People risk prison time with weed because they either make money from it or it makes them feel good. Why bother using a type of money that no one else is gonna accept? There's a ton of legal options. You can't say the same for weed.