Your logic doesn't hold. ICOs are much smaller than cryptos. They banned the former, not the later.
"Chinese miners might, but the PnB certainly doesn't."
I take it you meant PBOC, not PNB. Well once again, a crypto outsider comes to tell us "governments will ban cryptos!" I have been hearing this critic for 7 years... But as I said, as we have seen over the last few years, the general attitude of governments toward cryptos has been the opposite: they have encouraged their development, they have let the exchanges operate, they have created regulation to bring some clarity in the market, etc. It is actually almost surprising to see the amount of positive attitude coming from specifically the USA, China, and Russia, to name a few. Even the former PBoc governor has explicitely stated he did NOT want to "kill" Bitcoin: https://themerkle.com/former-pboc-governor-we-need-to-regula...
Yes, so long as they are in control of it. If the Chinese people start doing significant number of transactions in x-coin and not in Yuan then they lose their largest lever of power.
No. Your point would have been demonstrated if China had banned cryptocurrencies.
They don't need to yet because the cryptos aren't big enough. What they did is put significant brakes on them to make sure they can manage and track the rise/growth through known intermediaries - which is exactly what they did.
Banning them outright would have been too big of a move at this point and would have likely caused more instability than they wanted.
China actually covets their position as a leader in Bitcoin and altcoins mining, so they are protecting their economic advantage by NOT banning cryptocurrencies.
Chinese miners might, but the PnB certainly doesn't. In fact most of the big "Mines" are way outside of cities where they don't get much scrutiny. The PnB is probably looking to see if they can co-opt the situation, rather than let it run on it's own. I wouldn't put it past them to try and centralize it to make sure it falls under PnB purview - effectively having the same impact as making it parity with Yuan.