Haseeb I would share most of your views although I would note the following:
1. I doubt China and India have been very effective at banning BTC. A State ban only brings the BTC trade underground (see Venezuela) and is counterproductive.
2. Therefore much better for our Governments to increase the control over BTC. This is achieved by creating the bottlenecks that you mention to go from Fiat to BTC and viceversa. But also through the financialization of Bitcoin. This will serve to cap BTC as a store of value. If, sooner rather than later, physically settled Futures are introduced, just like it happens with gold, it will be easy to use highly leveraged paper short selling — which could be many times a multiple of BTC physical market — to keep BTC price in check. This is done constantly with gold — under normal market conditions — where the physically settled market is dwarfed by the paper market. The paper market determines the price, not vice versa. If BTC physically settled futures are introduced the financial speculators will set the price not the BTC holders.