Credibility has power. Yes, when some coin is associated with government, believe me it starts the golden journey. Government always work for betterment of their people so that is indirectly getting trust of users.
not really. at least not in this market it won't. because here people come in mostly for decentralization and lack of any governments to meddle in. so any kind of government involvement in any project will mean its failure.
you can take a look at Venezuela's Petro as a good example of a government involvement in a cryptocurrency which leads to miserable failure.
I agree that majority of Bitcoin users just want to escape form governmental influence and that Venezuela is best example for failure.
Still I beleive that not every attempt of governments to interfere is bad. Positive regulation is something that could really help Bitcoin and users and doesn't have to mess with centralization.
Basicly not all situations are the same and it would be great if there could be some general common approach to such problem