I didn't say they'd made Bitcoins illegal. I said in some places it may be illegal to pay someone in cash without prior approval from the government. As Bitcoin is essentially electronic cash it'd most likely be viewed the same way.
Yes you did and it is a misstatement of law.
Consider Joe Sixpack who receives his salary in bitcoins (for now ignore that some countries have already made that illegal).
Cash is defined under most statutes as legal tender. Bitcoin is not recognized under any statutes as legal tender and is therefore not Bitcoin is not cash.
Just because it may look like a duck and quack like a duck it still might not be a duck. There are plenty of distinguishing features between cash and bitcoins; legal tender status being the largest element.
Bitcoin is much more akin to a barter transaction than a cash transaction. Like paying salaries in apples or Farmville crops or PDFs. Can the State interfere with the freedom of contract? Sure, but so far it has not been effected in a way, although the French law cho mentions could apply (I am not familiar with French law nor its application in a Civil Code manner as opposed to Common Law) to apply to Bitcoin transactions.