There was a huge debacle with tornado cash, I am guessing the larger aim here is privacy compliance to both adhere to regulations while also protecting and preserving the privacy of your userbase?
Sapphire enables far more than just private transactions like tornado cash. Sapphire dapps can be entirely public or entirely confidential as well as the entire spectrum in between. By giving developers the choice of which aspects they wish to hide they can build dapps that best suit their respective needs. For example a dex could hide slippage parameters while keeping all trades entirely public they would be able to be MEV resistant but still entirely public. We expect that these are the type of use cases the majority of dapps built on sapphire will target