Do it. And ban any "proof of work" crypto
A better comparison might be banning driving for no objectively useful or socially acceptable reason.
I can see how one could deem it kind of totalitarian if driving for no purpose were legally banned. Add in the fact that many people here probably take computing personally (as do I), and it's no surprise that it will seem totalitarian to decide which kinds of computation you can use your resources for, regardless of whether the computation actually makes any sense to an outsider.
edit: word choice
Gaming has obvious value. Entertainment in all forms is necessary for people to feel happy.