Please humor me by explaining how regulatory agencies in the first world could be stopped from building barriers to converting BTC to USD.

They do not need to be stopped because they are incapable of stopping bitcoin in the first place. The trend over the last 5 years has been increasing convertibility from USD to BTC and vice-versa. You suggest a reversal in this trend without any specific argument to back up your claim other than citing a few instances where control has been established over certain internet business (gambling, etc.) that have traditionally operated in legal gray areas. Where is the 100 million dollar venture-capital funded Coinbase of the online gambling world that was shut down? Suggesting that regulators will be able to successfully reverse the current trend of increasing bitcoinization overestimates their power and flies in the face of the data we have for the last five years since bitcoin's inception.

As I said, in order to co-opt the current financial system - Bitcoin enthusiasts are asking for that same system's compliance.

The financial system is not some monolithic entity. If certain banks or even certain countries refuse to touch bitcoin, they will be at a competitive disadvantage to institutions that do not discriminate against bitcoin. China has realized this and regulators there have since backed down on their initial tough stance against bitcoin transactions in China. No compliance is needed when relevant incentives are aligned properly.

The two groups behind BTC are out of balance. One side - the pump and dump opportunists needs the other - the rebellious arm chair philosophers.

Sorry, but this is a ridiculous caricature of the bitcoin community. There's no one "behind" bitcoin - bitcoin is an emerging economy with millions of disperate actors acting as participants. To try and boil down the bitcoin economy or even the bitcoin enthusiast community into binary "factions" is just absurd.