The problems with getting fiat into Bitcoin would go away in an instant if we could get rid of the overbearing overregulations that are being erected to be obstructionist in nature.
That's not the only way to make the problems go away. You can also build systems which the regulators are unable to affect in practise.
We could have decentralized exchanges which would be effectively unregulatable if a method existed for creating a distributed, P2P fiat interface so that the exchange would not need to deal with a bank.
In order to create such an interface though you need some kind of cross-border contract enforcement and dispute resolution system that does not require any assistance from the existing legal systems in order to function (because one or more parties might be located in incompatible legal jurisdictions, or be anonymous, or be located where there is no functioning legal system).
Once the problem of creating a stateless private law system is solved, then we can build the other pieces.