2) the amounts crypto is used by regular people to work around some gov restriction is absolutely negligeble, a sand grain compared to the scale at which the gov does it.

And if it somehow becomes a problem it's only enough to make it illegal and report a few visible arrests in media for 90% of ordinary citizens to never even think of it again.

In Russia ISPs are already obligated to install special gov-provided black boxes (https://roskomsvoboda.org/en/post/usloviya-tspu/) that pass all traffic through them and as of last week VPN is illegal to promote or recommend in public. Using VPN to access restricted content? also illegal. Don't encrypt your DNS? Your visit to crypto exchange or VPN site is going to be noticed.

(And exchanges that are allowed to work in Russia legally are obligated to disclose transactions to the gov by law obviously)

So think about it. Those boxes, the police and military to ensure compliance and make necessary arrests, morning pre-trial cocaine for the judge, whatever. This machine is fueled by sanction workarounds instrumented by Western crypto-bros thinking they are helping "free" people in those countries.