OP, you asked if the EU will ban Bitcoin. In my view you included my position in your post. They wouldn't ban Bitcoin because it will cause more harm than good. But they will make laws that will make crypto transactions more centralized. People will find it difficult to use crypto privately in the EU.
If they indeed continue to be restrictive when it comes to crypto, what do you think could be the consequences especially when a lot of other countries are openly embracing bitcoin? Do you think that EU is doing the right thing or will they just go back on their words after seeing other countries get ahead with bitcoin?
They will always claim that the reason why they are making this strict regulations is to curb financial crimes and terrorist financing. They are not doing the right thing because they are fighting against freedom. The number of people who use Bitcoin legitimately is greater than those who use it for criminal activities. Why punish the majority because of the sins of the minority? People who are concerned about privacy will have to seek means of bypassing the law or move out of the EU.