So at the end, not all kinds of acknowledgement is good.
If we look at original idea proposed by Satoshi which is P2P electronic cash transfer, the idea eliminates the need of middle men (i.e. the banks) to transfer funds between two entities.
The government legislation's are putting the middle men back in place and that destroys the idea proposed by Satoshi. The government approved cryptos are CBDC, which they can control.
We need to understand that decentralised Bitcoin has it's own use cases and is not designed for governments to use as central currency.
Are governments bringing middlemen back, are they destroying the idea of Satoshi, or are Bitcoin investors destroying its decentralization?
I see people don't care about decentralization anymore, they only care about price, how to get the best profit...and to help the price increase, they support government intervention, centralized organizations and as you have seen, most of them are happy, cheering every time a country legalizes and issues regulations for bitcoin.
Personally, I wouldn't blame the government entirely, because what is happening is also our choice.