The price of bitcoin will plunge to 0 if that happens, which is the reason why it won't.
https://decrypt.co/48025/bitcoin-mining-pool-that-censors-tr...
Big pools need to buy cutting-edge equipment and use huge resources, they have to abide by regulators.
Most users would be unaffected because they just "hodl" and only care about the price going up + encouraging institutional adoption. Bitcoiners don't really care about making transactions.
The lack of privacy built into the protocol makes this inevitable. You're asking miners to willingly help move illegal funds while regulators watch