Name one major vendor that requires compliance by a government to integrate a cryptocurrency.
pretty much all major vendors including coinbase, circle and most exchanges.
it's hard to name one that doesn't. btc-e?
All relics of the past that require centralized authority.
https://bitsquare.io
I think you've slightly misunderstood this statement. It eliminates the need for financial institutions participating in a bitcoin transaction. It doesn't eliminate the need for them anywhere else.
No, I think the context was not made clear enough. If vendors everywhere deal in crypto then there is no need to interact with a bank because everyone at that point would be their own bank, responsible for their own financial security.