That specific article is spreading FUD and perpetuating a hoax. There's no evidence whatsoever that Ms. Presley's case is related to the DoJ.
Who cares if that particular case was tied to Operation Chokepoint? The fact that Operation Chokepoint is real and really targeting perfectly legal businesses should be enough!
Bitcoin certainly has made itself quite a reputation for being the currency of choice for scammers, hackers, drug dealers, online gamblers, and child pornographers. Merchants who consider accepting BTC might care about those things.
The US dollar is still more popular for those sorts of things, AFAIK. Maybe some merchants will be dissuaded from accepting it for a while by those things. The question is whether enough merchants won't be dissuaded for Bitcoin to reach a critical mass of acceptance and use.