Bitcoin is not static. It represents power to the hodlr. Governments were destined to want it. RFL's proposal to use it as a backing for the dollar is only stating the inevitable. This changes nothing. Bitcoin is not defined by governmemts, its defined by who accepts it in commerce. Governments produce nothing, corporations produce nothing. Ultimately individuals determine what is a store of value, not banks and not a small group of billionaires. 
The present limitations of bitcoin are designed to make it the optimally valuable limited resource in today's world. Transparency and simplicity is paramount to this purpose. Shitcoins are the collective toiletbowl where baselayer features can be proved or discounted. Layer twos enable some of these features in the meantime, though with some compromises. A government deciding to try implementing a layer two or three is not necessarily a bad thing. The first to do it in a credible way will dominate the future. Yes, politicians are slimy and we don't like them because they're all about trying to fix a system that cannot be fixed. Your instinct to move on from bitcoin in reaction is not misplaced. Just remember; not today, and not in 10,000 years:  nobody changes bitcoin, bitcoin changes everything. 

 "Your instinct to move on from bitcoin in reaction" ... I didn't mean this literally. I was expressing how cringe the conference was. Clearly a lot of people took it literally an explained to me how bitcoin isn't the cringe circus around bitcoin.  But I have a few brain cells still.  I knew that.