Yup, but without it, we will end up with two tiers of bitcoin. "Clean, government approved bitcoin", which are accepted anywhere and trade for a premium, and "tainted, government condemned bitcoin" which are refused by most businesses and users and are worth less. Yes, bitcoin itself will still be decentralized and censorship resistant, but if the only thing I can do with my "tainted" bitcoin is trade it back and forth for other "tainted" bitcoin with other "tainted" users, then it will have failed as a currency.

Yeah, fair points. It would just be nice to be able to get a bit of a feel for a new merchant I've never used before first, rather than having to make a small test purchase first to see if they are going to take issue with my coinjoined/mixed bitcoin. Although simply avoiding any merchant which uses BitPay already gets you a good chunk of the way there.