Why it is obvious getting full control of Bitcoin functionality and distribution seems impossible due the fact it has no central point of control one might expect stricter rules governing the use of custodian and non-custodian wallet, declaration of all cold wallet addresses, Setting up committee to monitor transactions on the blockchain public ledger, introduction of wallet trackers and ownership on different OS and maybe lots of wild experimentation to make regulation a possibility.
In as much as quite agree with all you said, I must also emphasize on the fact that achieving such as advance regulation possibility will take years and years of hard work from the government, it will take a really great commitment on their path to pull this off, trust me, it's not gonna be easy, and even though, like you said, technology is advancing, we might have all gone to meet our maker in heaven before the government can be able to achieve this height of regulation.
This is just my opinion though.