It doesn't show confidence in the market, does it? When you can't short does that mean you should invest? No it means you should look for safe havens to put your money for the time being.
Voted : Yes it will Due to "insider" information, which can be very hard to verify, I believe those "microwave" (quick money short term) deals have been hurting more than helping. I was getting unsolicited (email) tips on stocks that were supposed to "peak" quickly by short sellers trying to "pump up" stocks artificially in order to make fast money. At least for now, I think until some of this mess can be sorted out stopping shorting is a good idea...
Voted : No it won't Because they won't keep the ban permanent. After things *appear* to have settled down, they'll quietly go back to "business as usual", and we'll be right back where we are now one day.
