Also, designing a secure general purpose messaging system is much harder that designing a system tailored for a specific use case.
Banning encryption by law is like demanding, loudly, that people not talk behind your back. Some will listen, and some will not. Only legitimate users and use cases will suffer.
From a business perspective it would be like going back to before the internet, but many of the services we associate with the internet like Facebook, Netflix etc. would survive.
I assure you, steganography will always be possible. The only think a ban on encryption would do is hurt (badly) society, personal privacy, and those who want to follow the law.
It's technically impossible to do perfectly, but as we all know, perfect is the enemy of good enough ;)