Strong crytography means government can no longer do its thing, at least not has it's accustomed to. Strong crypto means untraceable payments, secure phone lines, information markets in what are now military and corporate secrets, liquid markets in illegal services, and of course a nearly total collapse in taxation abilities. Whether the government can crack down first is the fly in the ointment. Note that the way strong crypto works means a successful crackdown could only come as the result of strong police state policies. First, there's no need and the free market is already giving us a multiplicity of lines, channels, satellites, etc.
Anarchic development can produce a more robust system, actually.
Second, I fear the involvement of government. Already the NII proposal is talking about the nice things it needs to ensure fair access, a nondiscriminatory system, and so on. But I'll save this for another thread. The idea of a license plate on data packets is coming. It would provide for taxation of packets, much like road fees and truck charges, and it would generally make the Net an environment hostile to crypto anarchy.