Arrest them for what, exactly? The latter doesn't change anything -- if hash rate drops, miners elsewhere will pick up the slack, assuming it is profitable. If hash rate drops extremely quickly, we can release an update that causes the difficulty algorithm to update faster.
Provide money laundering infrastructure is one excuse. You know KNC's bank account has been shut down by SWEDBANK because some of the buyers are using mining infrastructure investment to launder money
Governments have hundreds of ways to disable bitcoin if they want, chinese government has already demonstrated that power
How so? They can issue bans, but they can't disable anything.
They only need to shutdown the channel towards fiat money to make majority of the activities disappear. I see that as the first direct threat to bitcoin if it goes mainstream. Chinese central bank prohibited financial institutions to do bitcoin related transactions, but currently chinese exchanges still operates. I don't know how they managed to operate, but I guess they use lots of private relations (in China almost everything works depends on personal relations). They will get hit if the central bank sound another alarm
So either you take the enterprise approach and make it official and regulated and accepted by the governments (thus you will never have any problem with bandwidth), or you play shady underground economy and be chased by FBI every day, that's your choice
What does being regulated have to do with bandwidth limitations? Those are infrastructural limits, nothing to do with the prospect of government prohibition.
If Government officially support bitcoin, then you don't need to hide your bitcoin nodes, you can build thousands of enterprise level nodes around the world, even draw 40Tbps fiber lines across the ocean to specifically serve the bitcoin network, so that on chain scaling will never be a problem. Of course the chinese GFW will still be a problem, but same, if the government said yes to bitcoin, then it might be possible to setup your own fiber
The current things in Venezuela does not sounds so good, because fiat money is a great way to tax the population, if bitcoin rises then that ability to tax the population will be threatened, I just don't see how bitcoin can pass that line without being heavily restricted