Everyone's spent outputs combined with everyone's spent outputs? Not all the time.
LIke I said in the OP there will come a day when a new user will buy bitcoins (say locally for cash) and when he goes to use them at a business or exchange or where ever they will be rejected. Not 100% of the time...but it will happen and we all know how the media today loves to jump on anything bitcoin related that is negative.
Please reference the OP as it was a prediction and just that.
Ok, I'll grant you that, but is it really a big deal if it outputs aren't combined "all the time"?
The people that have the "hottest" Bitcoins are obviously going to go to the most trouble to
mix and detaint them...and they do that already not because of blacklisting, but because
they need to remain anonymous and stay out of jail for theft.
It's not about ANONIMITY, it's about FUNGIBILITY
You can try to be (somewhat) anonymous on the BTC network, but that doesn't mean the coins are fungible
Ask yourself...
If you earn a legal income in BTC, will you voluntarily mix your coin with criminals?
You might not have a choice.
What are you going to do if I'm a criminal and decide to "taint" your Bitcoin by sending bits to your wallet? Sell your bitcoins?