Bitcoin will be legislated against as soon as it tries to become more mainstream. The powers that be have a vested interest in controlling the flow of money - for legitimate (fighting organized crime, terrorism, tax evasion) as well as illegitimate (information, power) reasons.
KYC will kill Bitcoin as the exchanges are forced to go through the same hoops as banks do know, plus requirements on reporting large transactions etc etc. Then you'll start seeing minimum capital requirements too, plus they'll have to abide by the same regulations as banks... and they'll be a bank.
I really can't see any other way this will work out.