The problem is mining hashrate is largely controlled by centralized mining pools. It's easy enough to censor transactions this way. Only solo miners have the true power to decide which transactions to approve or decline on the network. With how expensive PoW mining is becoming each day, things are going to get worse in the long run (more centralization). BTC needs to switch to an ASIC-resistant algorithm to strip away big mining companies and centralized mining pools from power.

This will be a subject of constant debate within the community. If centralized mining pools censored transactions (particularly F2Pool) tied to criminal activities, what makes you think they won't target the average person in the long run? Anything deemed suspicious could put your funds at risk (unable to move them on the Blockchain). It'll be just like what banks do today. The future is widely unpredictable, so we can only hope for the best.