Yes, but you can also buy drugs in the real world with cash and cash has also been demonized. However when Silk-Road was in the public eye briefly via mainstream news the value of Bitcoin actually increased. As did the user base at Silk-Road.. But what is the point you are making? Yes you can buy drugs and guns online with Bitcoin. So what. If you would care to elaborate the point you are getting at... Bitcoin WILL be demonized from many angles; the question is will it be able to survive and thrive in this time of exposure and publicity? As of this posting, Silk-Road is still up and Bitcoin has increased in value in the past few days.
I don't think they can take 'The Silk Road' down. I think digital currencies are very immature and have a long way to go and if you want my two pence worth I think NameCoin will eventually become the highest value in demand currency. As it's generated off the back of the BTC block chain but is also used for .bit domain names a peer2peer DNS system. So it's not just money for the sake of money it actually has a purpose as well.