The governments can't control Bitcoin because it is decentralized. It wasn't made in favour of a centralized system where one person or authority can have full power and control over its transaction. The farthest the governments can go is to impose regulations on Bitcoin transactions especially on the exchange sites.
Totally agree with you. Despite the regulations of the government of many countries, they cannot control the way people transact their cryptos. The decentralized nature of many cryptos make it hard for government to control them. Instead, they impose regulations to aid people in transacting their crypto assets.
Yes, that is their only solution. Since they cannot control the bitcoin, they will control or implement some rules and regulations to the people who uses bitcoin. That way, they can at least show their power, they control the usage of people and makes it as their advantage over it.
Since many cryptocurrency exchanges require KYC verification, they have your personal data. And, as it already became known, more and more cryptocurrency exchanges cooperate and share information about their clients with the government, especially if there are tens of thousands on clients accounts. Therefore, their strength lies precisely in this, they know exactly who owns cryptocurrencies and, in particular, bitcoins.