Many people is mentioning BTC as illegal not because of their narrow minds, but for fear and half knowledge about it. Many countries have mentioned using it illegal but no rules are their still, and USD/fiat is used more for illegal activities because its a world currency and BTC is yet not been common for the casual peoples. But yes definitely I agree, Bitcoin can not lead to corruption, its the use of Bitcoin which can lead to corruption.
Calling bitcoin illegal is totally stupid approach, as you said only narrow minded cryptocurrency newbies can say it.
Don't be mistaken anti-bitcoin countries are not trying to help their citizens and save them from influence of evil bitcoin.
They are worried that with new age of bitcoin powered economy they wouldn't be able to collect taxes. That's all.