To me that seems both too high a bar and making the perfect the enemy of the good. It’s asking too much of crypto specifically because the same complaint can be leveled against undeclared cash as you are leveling against crypto in your wage garnishment scenario. A hypothetical worker paid cash wages by a cash only business could in theory fail to divulge their full wages and thus fail to comply with a wage garnishment order. However, that is the status quo. To solve it is to solve it for all kinds of undeclared income, crypto included. For that reason I think that the current wage garnishment system is to blame for its own failings; it is also the moral failing or civil disobedience of the scofflaw which allows this situation as much as the existence of crypto. You may as well blame cash for the problems of crypto, and for the problems of wage garnishment evaders.

As to how you are making the perfect the enemy of the good: your complaint fails to specifically apply to cryptocurrencies in general or to any specific crypto for the same reasons it fails to apply to cash specifically. That cryptocurrencies cannot mitigate the market failings of cash is not a failure of crypto or of cash. It is no failure at all because cryptocurrency never sought to solve that which you perceive as a fault. The problems you raise may be very real problems in society, but they are not a problem that is in-scope for crypto developers to solve or mitigate. That’s more of a problem for crypto custodians and their customers.