I think we learned from the bitcoin etf denial is that maybe government is not yet ready to face the global awareness of bitcoin. Even if this happen still we can use bitcoin as is, its benefits and advantages to users. Thus, bitcoin is still being used and still adopts by many.
I'm not sure about that. Bitcoin's use as a currency is not changed by the ETF - in the case of approval, it would be viewed more as an investment and arguably less as a currency. I think that the SEC's reasons for rejecting it were genuinely based on their fears of Bitcoin's volatility and the safety of their investors with fraud etc, because they aren't linked to any government agencies which might oppose the rise of Bitcoin as a currency.