When has that ever worked? What banned technology is conceived of but not developed because some government entity said not to?
I think the "if we don't, then others will" is part of the natural progression of technology. Whatever the next logical step of development is, that's where development efforts will flow. Some might not want to go there, but some will. Someone banning it will likely only fan the flames and drive more interest into the space - ala the "Streisand Effect".
When the US government (et al) labeled certain numbers "illegal" because they could be used to break DRM or certain encryption types, academia and hackers alike openly mocked the notion. T-shirts, stickers, and websites sprung up further spreading this "illegal" knowledge. People who had no idea about how a number could be so "dangerous" suddenly wanted to know. By telling people they can't know or do something will absolutely drive people toward that knowledge.
The hacker mentality often answers the question "why?" with "because I can". Saying you cannot only encourages more to jump in.
