Governments can issue regulations as they please. No doubt about it.
The promise of Bitcoin was to leave governments unable to enforce any kind of regulations using technology and decentralization.
bitcoin never really promised that. it depends on the internet (at least it does today) and the electricity infrastructure, among other things. those are totally subject to government regulation.
The problem with that promise is that it is enormously expensive for consumers to run Bitcoin nodes. Therefore everyone uses third parties, there's not that many of them and there's absolutely no way for them to stay resistent to regulations.
the claim that bitcoin nodes are extremely expensive to run is not self-evident. the storage costs are actually quite cheap, and significant optimizations have been made over the years to mitigate for low bandwidth conditions.
i think the reason so many people use 3rd parties is out of convenience.