We'll never be rid of it. Like copyright law, It's crystallized into a self-perpetuating incentive structure. Everyone knows it's stupid, no individual has much incentive to try and change things. The ability to restore to a previous state is essential in the design of institutions, one lacking in our current governments. This is a very hard problem, but I'm hopeful prediction markets may be able to help with this in future governmental structures.
Prediction markets are so vastly powerful, both as a financial tool (hedging) and an information tool, that people would be screaming bloody murder if we already had them and then they were taken away.
Nick Szabo explains it in: http://unenumerated.blogspot.co.uk/2015/05/small-game-fallac...
The problem is, people won't be able to use it seriously (i.e. with non-trivial amounts of money), because once you convert your earnings into fiat money, it goes into a bank, so you have to pay taxes on it, and you can't put something illegal on your taxes (well, maybe you can, people say "the IRS doesn't care," and I'm no expert, but I doubt it).