Who here feels their homeland is more secure now?

So the outcome looks something like this:

1. holders of dollars at MtGox will buy as many btc as possible and remove them from MtGox, because there's no other escape for their dollars

2. holders of btc at MtGox will presumably send them elsewhere because selling them for dollars doesn't make sense if you can't get the dollars (although perhaps it still makes sense for euros/pounds/yen etc)

3. There is a loss of liquidity at Gox from all the btc being pulled from there

4. The dollar price at other exchanges starts falling because they are still exit points for dollars

Most of the trading volume is in dollars at Gox if I'm not mistaken, so this might be the death blow for them. Although given their history of incompetence, it was kind of sad the network effect was protecting them. Perhaps a phoenix will rise from the ashes.

Dwolla started implementing some policy changes a few weeks ago regarding Mt.Gox which was a pretty good tell about something bigger coming along. I'm glad that I took the opportunity to move my funds away from Dwolla at the time and avoid this mess.

Doesn't something like this compel people to use bitcoin more rather than less?

This is a big hit to US traders for sure, but there are other ways of transferring money (albeit not as convenient).