Yes but government banning on/off ramps and illegalising the trade can and will affect the ecosystem. Pushing the whole system underground is the answer but at what cost? can it survive forever underground? will users still want to take a risk of using it? will the community still believe in Bitcoin at this point?
a lot of ifs... I know..
I think they want to control it instead, just take a look at the recent progress on KYC/AML policies and stuff like that. I bet the government will use this to eventually increase their income through taxes, which is way more profitable than banning crypto without any real result. The abuse of the network due to some bad actors will always exist, so trying to increase the control on how, who, where, and when they use it would be a better choice imo.