But it would also be that, or face sanctions and lose their users, or shut the service down. They simply chose the trade-off, and lose some reputation.
Except they have freely admitted that they aren't facing sanctions and that are no laws or regulations forcing them to start censoring their users. They are doing it voluntarily to make more profit. They could either have continue to operate as they did, or they could have spun up an anonymous coordinator. Either way though they would make less profit, so they decided to sell out their users to line their pockets instead.
But think about the situation from WasabiWallet's own viewpoint, should they wait until it's too late, and they are facing sanctions and/or possible extradition before accepting the trade-off? Should they freely admit that the United States government, or any government is already threatening to sanction them? They will always say it's safe to use the service.
I'm not sure about spinning up an anonymous coordinator, let's ask nopara73, but WasabiWallet itself, the website, the developers, the profit would be threatened even if users can mix through an anonymous coordinator.
It then makes logical sense for them. They want to provide their services to institutions who merely want a mixer/tumber, but without "the taint".
Taint only exists because institutions like Wasabi perpetuate this nonsense.
I agree, but this is the point, "they" don't and "they" can lock us out of our accounts from "their" services/confiscate our coins.
From their perspective, yes, and not only their users, they're also protecting themselves from being sanctioned.
They aren't protecting their users from anything. They are selling them out for their own benefit.
I respect your opinion, and I can agree, it's protecting their incentives, but it's still up to the user if they continue to use a service/a software/an app or not.