Ehem, ehem,
XMR users are attracted to anon coin for a reason...and usually, most of them want to remain anon as well...

There are multiple reasons for being part of the Monero community although lately you would be hard to find anything other than moon people.
If that happens, it will probably encourage anon coin lovers to like it more...
Some people just love the bad boy (outcast) of the lot.
True that it will attract more anarchists and the like but as far as Users go it will be detrimental as if it is made criminal then just having the software could get you jail and or worse in some countries so that would cut out a huge chunk of the people that this is designed to help. It would not be a zero sum game but a net loss IMO.