How We Realized Putting Blockchain in Everything Was Not the Answer (2020)
Especially if you have a limited time to clear transactions.
Bitcoin's main problem is that you have to transfer value into and out of it somehow. In most other ways it is far superior to existing currency movement mechanisms.
You say this, yet what you described doesn't contradict my description at all. It is true that banks will do things governments ask them to do. It is also true that bank transfers are not perfectly private. All the drawbacks of bitcoin are also true. If you're going to defend it as, "far superior to existing currency movement mechanisms," then you should say why you think it is. I think it isn't - for the reasons stated.
In those cases it is a problem with government insight, the actual problem is the government itself, and there are more pressing problems to deal with, rather than worrying about the money transfer systems.