What I'm grabbing my popcorn for is the moment they stop with the backlisting and start with the reverse thing, whitelisted addresses only in their blocks, so unless you do KYC with every single one of them wit all your addresses you might have to think of solo mining

. And it's going to happen, I'm 99% sure they are already thinking of it but are just testing the waters for a while with smaller measure for a while, then, some will have a shock realizing how little decentralization we have in this aspect.
I see that this comment has been overlooked because no one has said anything about it. In my case I hope you are wrong, what I am afraid of is that it sounds quite plausible to me. I have long said that governments when they realized they couldn't stop Bitcoin focused on trying to control it and this would be an ultimate form of control. It goes along the lines of the legislations in progress to treat Bitcoin transactions as if they were banking transactions, so yes, unfortunately I see your vision possible, although I hope it doesn't end up being realized.