If I'm reading this right, you are predicting the inevitable failure of Bitcoin as a mainstream financial tool. Start-ups can't afford the cost of entry and power-brokers with deep pockets will crush new legislation, yes?
Well the US isn't the entire world, the rest of the world doesn't really care how dysfunctional the US regulatory structure is. So I see two potential outcomes (and I should state this is my personal opinon doesn't reflect the views or intentions of my employer). One potential outcome is that startups abandon the US market. They operate when regulation while not non-existent is at least not an impossible burden. The ones which are successful gain the resources to handle the large fixed overhead that MT licenses creates.
The other scenario is startups in the US comply with federal requirements, and are able to grow faster than the response from states; in essence grow to survive.
It certainly is an obstacle to growth, and innovation but progress already routes around the damaged parts of the system. Bitcoin will survive, however the US may simple lose its status as the "tech capital" when it comes to Bitcoin related enterprises. I am not saying that is a forgone conclusion but the regulatory risk and uncertainty doesn't help.