Protocol-level fungibility can be used to launder money so by your own logic you're promoting money laundering.
Didn't you saw latestUS news?!
There was OG complaining and protesting every day about money laundering of US dollars.

If Elon Musk laundered money with his DOGE scheme than people shouldn't drive Tesla because they support money laundering.
Anyone who sent deposit to buy Tesla is supporting money laundering, drug trafficking and illegal surveillance.
Fungibility on its own is not against the law, at least not where I am, and if it ever is outlawed then it would likely make protocol-level fungibility (or usage thereof) unlawful as well. For example some exchanges delisted Monero etc for "compliance reasons", which is a good indication of how this would play out.
I have to agree with him on one thing, it would be much better to have protocol based privacy for Bitcoin.
We can compare this with Monero, but Bitcoin is much bigger and it would be much harder if not impossible to make it illegal at this point.