It's not how it works in fiat, but it is how it works in Bitcoin and that's why it's such a big issue.
Centralized service providers have too much power because we - the users, gave them that power and put them in a position where they feel comfortable to make arbitrary decisions. Fear of government backlash and a desire to profit with various partnerships is way more up on the priority list than ethics, morality, and sticking to your principles. If everyone used Bitcoin (including myself) in a decentralized P2P way, this Wasabi discussion and their decision to possibly censor bitcoin would have ended a long time ago. People would simply switch to one of a dozens of other alternatives (unfortunately there aren't that many) and forget about Wasabi.