There is a difference between me using Monero and the government accepting everyone in the country using Monero.
But, you're a miniature of how the world could operate if they'd want to. Yes, the government would never accept everyone in a country on using an untraceable currency, but what if the people started to constantly asking for it?
Didn't Bitcoin survive the same way? Most of the governments were justifiably against a so anarchic currency from the very beginning. Weren't we reading FUDs that they'll turn it down, ban it, make it illegal? And here we are, eleven years later and it seems like it's succeeding more than ever. Why? Obviously, the people want it.
And they want it, not only due to these speculations, but because it'll provide them financial sovereignty in the long run. Because, it has the properties of the best store of value asset they've ever witnessed. Because, they prefer owning money that do not lose value every year. Because, they like the idea of distinguishing money from the state.
There may be need for privacy in the future. I'll let that sink.
Besides, aren't LN and taproot privacy improvements in the protocol? Did we ever ask ourselves, what the government thinks of it? No, because we're the rulers after all.