This is an L for Bitcoin IMO. I'd rather have Bitcoin properly perceived as censorship-resistant money rather than money unsuitable for terrorists.
Discussion
I'm sure they are still mining Bitcoin, they just don't want garbage KYC Bitcoin.. pseudonymous non-KYC Bitcoin is more valuable. Surveilled Bitcoin is worth much less.
1 BTC =/= 1 BTC
this is something I've been thinking about recently.. non-KYC Bitcoin is quite a bit more valuable.