A friend of mine was of the opinion that the government cannot put an end to Bitcoin because it unfortunately cannot be traced to a particular person or organization which could be sued for bringing about the currency or Blockchain.
I agree that the government cannot put an end to Bitcoin not because of the untraceable person/group of person behind the Bitcoin creation but because Bitcoin is decentralized. If you happen to know about torrents or decentralized file sharing, the government had been trying their best to stop such kind of file sharing, even catching people behind these torrent sites but still failed to put an end to this kind of activity.
If this is true does it mean that the identification of Satoshi as a person or organization will pose a treat to the existence of Bitcoin or otherwise
I don't think that the identification of Satoshi will pose a treat to the Bitcoin industry. Bitcoin had been independent for years now, and had been booming even after the original creator had hid himself or does not publicly participate in the development of Bitcoin after his disappearance. Even with Satoshi surfacing, I do not think that the authority have the reason to apprehend him because of creating Bitcoin.