As soon as an entity (Wasabi) has the ability to pick and choose who is and is not allowed to spend their money in certain ways, then your system is centralized, is not private, is not censorship resistant, and is not free. This is what Wasabi have created here.
The list of things they have admitted they will censor for is bad enough. It won't be long before that list grows, and there will definitely be other things not on that last that they will censor for and just not tell anyone about.
To their credit; I wouldn't say 'Wasabi created
this'. Censoring and blacklisting, as well as Chainalysis existed before and was applied mostly on centralized exchanges. But the fact that now a presumably privacy-friendly wallet that even claims to improve your privacy, implements censorship and blacklists, apparently came like a bit of a 'wake up call' for a lot of people. Which I think is great! This very important topic (as a whole - not only related to Wasabi) was mostly ignored as far as I can tell and it's great that people's eyes are now progressively opened.
I hope we can raise more awareness and maybe cause an effect (or support / use / build / improve
actual privacy-improving projects and technologies) due to this whole story!