It's not going to be government regulations that kill Bitcoin, its the associations with illicit drugs, child pornography, and dishonesty of vendors like Robocoin.
Unfortunately, Bitcoin has attracted more than its fair share of scammers -- in part because the core community was at one time pretty naive -- but it's also full of honest people who are attracted to Bitcoin for ideological reasons, and fellow technophiles who are happy to engage in honest commerce with other people.
For people who are attracted to Bitcoin for ideological or technological reasons, mass adoption would be nice, but it's not as important to us as it is to the massive wave of "to the moon!" speculators who came in last fall.
It seems to me though, that due to bitcoin's relative newness and grey market status, you're going to see a lot of scammers and bad businessmen related to it. It's high risk in that sense, and you need to do your research. Give it time, and the bad business practices will be weeded out, and stability will come. This is the pain of early adoption.
It's just a matter of people realizing that fact, and re-acting accordingly. Be more cautious, perhaps come up with some sort of novel organization to fill this need, even.