I think it is a mistake to suggest the Bedford v. Canada challenge by Alan Young is part of the problem.
The idea of asymetric criminalization was mentioned during the recent arguments before the Supreme Court of Canada and the impression I got was that it would not stand in Canadian law. There could be an ugly mess for a while but at the end there should be a large gain for sex workers rights.
Inaction and just keeping your head down, hoping everything will just blow over can be a dangerous strategy. Gay rights have progressed because activists held parades, fought legal battles and got in peoples faces.
Regardless of whether or not we had Bedford v. Canada, the prohibitionists were going to push for the Swedish scam, saying how much they care about the poor prostituted women and how the helpless and hopeless creatures will be better off with laws that make paying them a criminal offence. I expect it is being pushed in other countries where there has been no substantial challenge to existing laws.
The Himel decision is a huge step forward, especially if it is confirmed by the Supreme Court of Canada, regardless of how the Conservatives act or react.
Conservative governments tend to be reactionary. With regard to social policy, the current government certainly is (at least when they want to appeal to their "base" supporters). They make decisions based on their ideology (which in this case is.. sex should only be between a man and a woman who are married to each other solely for the purpose of procreation. In the missionary position.)
Basically, as I understand it, the case is as follows:
If prostitution is legal, then a number of other laws surrounding it (communicating, living off the avails, etc.) are unconstitutional.
Remove that assumption (by criminalizing prostitution), and the rest becomes a moot point.
Is there anything that could stop such a law? I don't think so. I have my doubts that the Supreme court would ever say someone has the fundamental right under the constitution to sell sexual services.. they will likely punt that one to Parliament. And if such a law were introduced, its supporters would be vocal, while it's opposition would be much more subdued (who amongst us - guys or SPs - would be willing to take a stand and openly and publicly support prostitution? Not many!).
Look at how the government reacted to the Insite case as instructive. (For better or worse) I don't think there will be another safe-injection site opened while the current government is in power.