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.
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
Yes, that's exactly what would have happened to Satoshi Nakamoto only if had he or they made themselves known to the public as the official creator of Bitcoin. Bitcoin wouldn't have had this less control by government if they had known who Satoshi is, because just as your friend earlier said, he should have been sued to court or threaten long time ago immediately government noticed people now prefer depositing huge funds into Bitcoin rather than fiat where they have total control over the people's fund.