History is riddled with examples of this... There is a big difference between say TOR (a general technology) and Napster (a tool that was once used almost exclusively to illegally distribute music). This sounds closer to the later for me and even if we were to prevail (which legal precedence would not be on our side, though I'm not a lawyer), it would certainly invite more scrutiny and legal challenges than it would be worth. I personally think we should leave the illegal underground associations to Cloakcoin. We're changing the world plenty with our payment network, which will in time face it's own significant share of PR / legal / regulatory scrutiny. I would caution the community against taking on something bound to be even more controversial. It's easy enough for independent p2p auction sites to use our coin... and that's not anything we can add unique value to anyway, imho.
Why make it a dichitomy?
My calculator has "dumbass" and "scientific" modes. Some have special functions for accounting of real-estate, like interest compound, etc... Why not have different modes for the wallet such as "derp" and "nerd." Of course, my names for these modes are descriptive and you'd want to change them...
We should definitely focus on getting the sleek "dumbass" version finished first. More complex/enthusiast features can then be added as time goes on.