I really think the bitcoin economy would benefit a year or two from now if federal regulators "cracked down" on it and required licensing to buy/sell USD for BTC. Why? Restrictions between BTC and USD would foster more BTC based production (natural resources, goods and services) even if costs currently favoured USD production because producers *want* BTC for the long run and can't acquire it anonymously through USD exchanges. Plus BTC thrives wherever people want to do private business *privately.* Conversely, if federal and state drug laws were abolished that would temporarily set back some valued BTC utility. Of course, USD inflation will probably be the final driver for BTC.
Although I see your point, liquidity is a positive thing for the Bitcoin economy.
I had an opportunity to pay in Bitcoin for an item I purchased in the past week. I wanted to show the merchant (which recently started accepting Bitcoin) my support, yet ended up paying via Paypal anyway.
Why? A year ago I would have paid in Bitcoin no questions asked. But all the effort it would take
today to acquire replacement funds to replenish my wallet anonymously I decided just to pay in FRNs.
The same pressure you reference as pushing merchants towards "BTC based production" will stop buyers from purchasing these goods.