I kind of disagree. It’s not like the major use of coins are, or will be, illegal activities. For mainstream use the anonymity of coins is more of a problem than a solution. If I pay somebody I usually want to the receiver to know that it was me who payed. If I am a merchant I need to know who payed me and what for (a email, like with paypal, would be enough). The usual workarounds are rather troublesome and inconvenient for the customer and the merchant.
In my opinion FTC already matches most requirements needed to make them interesting for merchants. It is on exchanges, a growing user base and even a Fiat to FTC exchange is in work. All what is missing is a simple to use solution for merchants and customers.
By the way: Paypal started to loosen their rules regarding adult. Wonder if that is because of the upcoming EU regulations or because of the growing threat by crypto coins. :)