Regulation of BTC is not necessarily a good thing BUT, I think regulation of major players lends credibility to the system and IS a good thing. I like to know that my exchange isn't going to close up shop and abscond with my BTC overnight. I like the idea of regulation not for users, but for major institutions.
The thing is, eventually this transforms into companies asking favors for the government, and in turn the government gives these certain companies advantages over others. We don't want bitcoin exchanges to turn into the the top 6 national banks. Next thing you know, we'll be saying MtGox is too big to fail, too big to jail. I don't even want to imagine that scenario. Ugh.