Re: Eventually the FUNGIBILITY issue of bitcoin will make headlines ...
Privacy and fungiblity are different concepts, but perhaps there is some overlap? The fact people often conflate them would indicate this.
I don't disagree there.
When individual or groups of satoshis may be (on the basis of unique traits or general taint) identified and discriminated for/against, how is Bitoin "absolutely fungible?"
Anything can be discriminated against. Does that make everything non-fungible? If I refuse to be paid in gold does that make gold non-fungible? Strangely enough the Thai Baht is not accepted at my cornerstore. Is it non-fungible?
If Bitcoin is "absolutely fungible" then how did BTCE [do whatever they did] with the Evolution coins?
I see your point about gold (in spite of the tenuous radioactivity example). (Non-radioactive) gold is fungible, even if a particular institution acts in a particular way towards some particular customer's particular gold.
But wouldn't the gold be be even more (ie exhaustively) fungible if it could somehow negate the ability of any and all institutions to discern its provenance, thereby destroying the possibility of non-interchangeability in all particular instances?
I see your point about gold (in spite of the tenuous radioactivity example). (Non-radioactive) gold is fungible, even if a particular institution acts in a particular way towards some particular customer's particular gold.
But wouldn't the gold be be even more (ie exhaustively) fungible if it could somehow negate the ability of any and all institutions to discern its provenance, thereby destroying the possibility of non-interchangeability in all particular instances?
Not if I follow your logic (and smooth's) which states that anything which can be discriminated against in a transaction is to be considered non-fungible. I know it was a reach for me to lead you there with the "radioactivity" example but that was simply to illustrate the current popular interpretation of fungibility is kind of a slippery slope
BTW, if it was illegal for merchants to accept XMR, we'd just use shapeshift or https://xmr.to/ and be on our fungibility-not-affected way! 
That's unfair
I can obfuscate my Bitcoin transactions also and be on my fungility-not-affected way either 