The government doesn't want to have an distraction for their leadership in their country because if they will let a currency that is decentralized to take over their country then they will be on a risky situation because the people will not use the fiat more often
I think the only reason why government doesn't recognize bitcoin is because it is a decentralized form of monetary system and its hard for them to interfere, so the only they can attack bitcoin is by making block propaganda to distroy the image of bitcoin but banning is very hard for them to do.
I think so too. And, at some point government can't see things any better for them. They only think for themselves than those people who are suffering from their regulations in each society. They don't know how small entrepreneurs live how they make earnings just to eat a day. Banning bitcoin by government has no justice and maybe for them they ban it because it is a good competitor in the market and it's hard for them to compete. No matter what government do,bitcoin is still a bitcoin.