Yep. As I told people in the bitcoin space years ago, the Roman Empire and Ghengis Khan and Imperial Britain all existed with decentralized, fungible, untraceable money called "gold and silver coins". That didn't prevent the State from existing or collecting taxes or imprisoning people or enforcing its sundry laws.

Bitcoin may change things, possibly a lot, and maybe for the better, but you have to be realistic about how much change is actually feasible.

The current governments exercise a lot of power through the banking system because it's convenient. If Bitcoin (or some more private successor like Zcash) makes the whole finance sector "go dark", like "Tor for money", those governments will still be there doing their thing, just using slightly less convenient methods.