I see some valid reasons brought up about zerocash. The fact of the matter is if you want the widest amount of acceptance from both a miner/investor level all the way up to the government you're going to need transparency. I agree with the decision that was made by the devs. Do you really think the government will let a coin run rampant if they can't ensure that it's not being used for illegal activity and/or the government isn't getting its cut? Or do you think they would be more accepting if there was transparency? I think the choice is clear.
I believe the assertion that "acceptance of government is required" to be false. Bitcoin will fulfil that role. The reality is that vertcoin cannot displace bitcoin in that role. If vertcoin does not take this initiative of privacy then another coin will. The assumption of miner acceptance and government acceptance being required at the same time will be tested sooner or later. I think it would be advantageous for vertcoin to be the first in this space. If not, it will be a missed opportunity in my view.