We have a legitimate requirement for transparency
Transparency is completely orthogonal. There is nothing preventing you from keeping transcripts of your own transactions, along with the signatures with the relevant keys to show that they are yours and present them to whomever you want.
The distinction is that you control that, it's not something being broadcast to the entire world... to every thief, every competitor, every nosy neighbor, every ex-spouse, etc.
The highly public transaction record in Bitcoin is unprecedented in financial systems. It is a weakness, but one that can be patched around, and not a virtue.