Uber today, driver-less cars tomorrow. Technology is changing industries and smashing a couple of taxi's with hammers outside the department of justice is not going to change that. They will need to adjust to whatever the future brings whether they like it or not, and it's not only the taxi industry.
It probably won't happen, but a sensible approach would be for the government to offer something like a "Plate buyback scheme" that they do in Australia to compensate taxi drivers/plate owners that purchased these expensive plates a while ago, and then this can be funded by properly legalising uber/etc and adding a few dollar surcharge onto every ride for the next few years until enough funds have been raised to compensate all the drivers/plate owners.