Unsupported assertion. Care to show your derivation?
So all those people who are planning not to cash out into USD who already have thousands or tens of thousands of Bitcoins, you don't think they wont want to be able to pay their utility bills and rent?
Bitcoin can become something we can all live off someday or it can get completely ruined by the crowd who under any circumstances are against regulation. At some point you have to weigh whether or not under-regulation will stifle the currency just as you have to weigh whether or not over-regulation will.
I'm saying under-regulation is equally as bad as over-regulation and that the goal should be to find the proper balance.
You did not show how they "simply cannot do that if it's not regulated." Plenty of people live as well as they like off of their bitcoins already (the yahoos trying to make it into news items and documentaries are trying to do it without using intermediaries like Gyft cards. If you allow for that kind of thing though, then it's clear: bitcoin requires NO regulation.)