Bitcoin's technology is unstoppable, like p2p filesharing has proven to be unstoppable. But "the Bitcoin Project" could fail in a bunch of different ways.
If mainstream people think "Oh, bitcoin is that internet thing used by criminals", that is bad for bitcoin. It might be bad enough to kill the project (note that I said "the project", not "the technology").
If bitcoin really does turn into an internet thing only used by criminals then I'll personally consider it a failed experiment and will find something else to do.
PS: the cbsnews interview was with Jeff, not me, and my last name is "Andresen"