The majority understand Bitcoin and know it is good for business, but the reason they haven't adopted Bitcoin as a method of payment is because the government hasn't declared acceptance of Bitcoin. Some business people may be accepting Bitcoin from a few individuals, but this is at a low level, and they wouldn't want to make it public.
So, it is because of the government that Bitcoin is not leading as a major payment option. It is difficult to adopt Bitcoin for payment in business because in places where Bitcoin is not fully adopted, the government sees it as a threat.
Agreed.
As for now, in many places, BTC would be seen as going into the grey zone, which the govs wouldn't like, and would probably see it as a casus belli to look into your finances more thoroughly.