For sure, but the larger countries still matter the most. If USA decides to indefinitely ban privacy coins, it's literally declaring war on privacy. Other countries will see that as a massive opportunity instead and will decide to support privacy coins instead.

However, a ban or an oppression in a large country still means a significant reduction of volume and usage of the said cryptocurrency. Devs from the said country would probably stop supporting the coin's development so they wouldn't be legally penalized.

There will always be alternatives, but how many people would really consider them? Do you think a lot of people'd leave the US in case of a Monero ban? I wouldn't!