The problem is that bloom filter or whatever methods being used by most wallets uses are fundamentally flawed. The onus should be on the wallet to change their ways of querying the server in a bid to improve privacy. Wasabi for example, uses BIP158 which requests for the entire block as well as additional decoys from their peers. This would be far more effective at tackling the root of the issue.
Exactly, it's more practical to use BIP 157/158 rather than modify fundamentally flawed protocol.
For the vast majority of people, who are not doing anything illegal, it is the lower level mass surveillance and general unwarranted invasion of privacy that you want to avoid.
But doing certain action such as accessing Tor Project website and searching for certain keyword on Google search is enough to make you placed on government watchlist.