But on that note, with the freedom of being able to exclude transactions, also comes some responsibility that bad faith authorities like the OFAC might want to impose on bitcoin miners.
I expect mining pools to understand the ethics and principles of the BTC network, it is true that mining is a 'business' and miners want to make profit, but sanctioning tx's defeats the principles and ethics of the network and it also doesn't help them in the case of making profit, because they are rejecting the tx fees attached to those tx's. The authorities cannot 'impose' anything on miners, because pools have the 'right' to oppose any policy that affects the nature of BTC network, and if the conditions because so unfavorable, it is better miners relocate or pack up their gears, than for them to directly 'attack' the BTC network.
So the idea of cloaking transactions before confirmation just so miners can't see what they're confirming might be a good idea after all. No possibility to pick and choose means reduced liability also.
That is not possible, the BTC blockchain is both a public and transparent ledger, everything is open to everyone and even if this was possible, i would not support it.