Morally, and in principle: of course it should be on the list.
However, if we consider the argument from effect I think it's obvious that for the sake of bitcoin gaining popularity it should be left off the list.
But think two steps ahead. If we remove all illegal stuff, what kind of people are we going to encourage to adopt bitcoin. The answer is your average Joe. Bitcoin gets popular - all good and well. That's step one. Step two is when governments take action against bitcoin and I believe it's not a matter of if, but a matter of when. What do you think the average Joe is going to do then? The answer is simple - leave. If we lose big portion of adopters it will cause major problems.
Not too long ago I argued the same argument, but now I realize I was wrong. We should firstly obtain a stable user base who realize the concepts and implications that bitcoins brings and not just think it's a cool new get rich quick scheme. Average Joe will have their chance to join when bitcoin is mainstream.
heres a way to look at this dilemma for all the anarchists on this site. THINK LIKE A CRIMINAL. whats the best way to get your addicts hooked. tx them nice initially with nothing but good (money, dinners, parties, being nice). then once their hooked, tx them whatever way you like. same with BTC. be nice initially to get the masses hooked, then who cares what its used for later. by then, it'll be too late for gov't.