Mass adoption without govt would be great, but I'm not sitting around holding my breath waiting for that to happen.
Case use #2 is all I care about.
People who want case use #1 would definitely want govt recognition & legalization of bitcoin investing because it would legitimize their activities, but I'll keep saying it a million times... I feel like using btc for anything other than subverting the state and banks is asking for trouble, IMO.
People who disagree think I'm just silly anarchist. I am, but I live by agorist ideals & solutions. I don't believe in legitimizing the state. Period.