2) Inundate the network with loads of exchanges, possibly just copies of MtGox for example.
3) Make commodity backed accounts instead of money backed. (money is fake anyway)
An alternative to a hidden service is just to have exchanges operating in as many sovereign territories as possible. There has to be some government that recognizes, if not the potential of Bitcoin, at least the potential influx of foreign capital from allowing legal exchanges while their neighbors don't.
Either way, the easiest way to set up multiple exchanges is by freeing the code so it can be spammed across the internet. I don't know if any of the existing exchanges will be freeing their code anytime soon, so a "Free Exchange Project" may be in order. I haven't done any serious coding since... well, ever, but I'd be interested in at least following something like this.
I like the idea of commodity-based exchanges like BTC/XAU, but they have the same deposit and withdraw problem.
I don't really think Bitcoin will be banned anywhere in the near future, because most people still aren't taking it seriously. Senators Schumer and Manchin seem to be exceptions, and yet they still don't take it seriously enough to find out what it actually is. Our little economy is still only about 30% of the way from "joke" to "threat". But for those invested in the project, it's still worth thinking about this sort of thing in advance.