What happened to XMR coins is the worst nightmare of investors using it. The government can’t do anything directly to the project but they can always target exchange to delist it or make a law that restricting user to own since every in crypto is starting to be regulated. Privacy coin might continue to exist but there’s no guarantee that user will keep using it of the government itself will do whatever it takes to restrict user on acquiring this kind of tokens.
Wrong again. Not all the exchanges can be affected by governments. That's exactly why no kyc decentralized exchanges exist. They can't be banned or forced delisting something.
DEX can be taken down by regulators easily. A few times dex got taken down and developers got jailed. All of exchange sites can be affected by the governments. We have international law. As long as the exchange site was violating the law and it can be taken down by the government. Even tornado can be taken down easily. Are you expecting anything that being decentralized can't be taken down?