Thought Experiment: Consequences of a Government ban on Proof of Work Mining

There have been rumblings about banning proof of work mining for years. Just today we see another policy paper from the White House Office of Science and Technology proposing a PoW ban. A PoW ban would have immediate and drastic effects on crypto mining in the USA. Much of the world's mining farms moved from China to the USA after China banned mining. In the event of a mining ban, large crypto mining farms in the US would suffer huge losses, and would likely go bankrupt. Smaller miners would go underground and try to spread out their power consumption to avoid detection. Mining pools would relocate to bulletproof jurisdictions to avoid doxxing their clients or getting taken offline. Node operators might even implement measures to avoid takedowns and surveillance.

However, on the whole, a mining ban could be GOOD for crypto. It would decentralize mining much more, and cull the herd to those willing to risk prosecution to sustain the network. Hashrate would drop massively, and difficulty would adjust, resulting in a tremendous increase in mining efficiency. Power utilization would be cut 100x or more. Pool use would increase dramatically to shelter miner IPs and location. Countermeasures against government shutdown such as protocol encryption (isn't it shocking that BTC P2P traffic is still not encrypted?), obfuscation, and port randomization would rapidly deploy, and crypto P2P networks as a whole would become more robust. Price of coins would drop quickly as people rushed for the exits, but cost of mining would also decrease rapidly.

Discuss?