Outlaw currencies are useful to outlaws all the time - you just need a currency that's only locally outlawed. Look at Argentina right now with US dollars, or the US decades ago with gold itself.

More importantly, regardless of what does or doesn't happen, Bitcoin as a technology can, with 1MB blocks, survive in the event of fairly severe oppression. I'd much rather have such a technology exist and have that option than not have it. It might not be as valuable as a BitcoinLite without those strong security guarantees, but the world is a better place when we have every option available to us.

That's why I work on Bitcoin.