"Extremely well-known VCs"? Acronym search for "VC" yields nothing meaningful in a list of 50. In other words, extremely well-known, when applied to "VC," (virtual currency? Virtual credit? Virtual company?) doesn't mean much?
VC = venture capitalist. If you google "bitcoin" and "VC", you'll see all the names. The fact that you didn't do that makes me question the wisdom of even addressing your questions, but I'll try a few anyway. A few of the names: Fred Wilson, Chris Dixon (of Andreessen Horowitz). Google for the rest. Etc. Major venture capitalists.
Heroin has "explicit legal recognition" -- as a CI drug. What's Bitcoin recognised as?
Bitcoin is recognized as a "virtual currency". Read the FINCEN document.
In other words, you honestly believe that Paypal or Western Union is likely to offer bitcoin transactions? You don't even need to convince me, just tell me that you think it likely.
If you do not, why even mention it?
Yes, I honestly believe that WU may integrate Bitcoin into its service offerings. Paypal, unlikely. But the point of mentioning it is that CEOs of huge companies are talking about Bitcoin in a serious manner. They don't make these comments off-the-cuff. Some very serious vetting is going on.
Look, I don't need to convince you, and I don't have the time to answer all your questions. But try researching some of these topics yourself, and you'll get a picture of what's going on. For example, check out r/bitcoin for the past week or two for all the businesses announcing that are accepting Bitcoin now. I'm not claiming that huge businesses are accepting bitcoins, but more and more small- to -mid-sized businesses are.
It's good to be skeptical with Bitcoin-related discussions. But I have little doubt that Bitcoin is going mainstream. What that means for the price I'm still not sure.