In November 2014, pip install --allow-all-external --allow-unverified pywikibot pywikibot==2.0b1 was the necessary command needed get pywikibot to install into an virtualenv.
Pywikibot should have actual tarballs uploaded into pypi to make installation easier.
At the 2015 Lyon Hackathon, tarballs were uploaded to pypi, however it is a pre- release, so the current command needed is:
pip install --pre pywikibot
Releasing pywikibot with a a normal version number, with a tarball on pypi, will mean users can do pip install pywikibot