I say we do what we're already doing. Writing software. When exchanges started implementing KYC, and out of nowhere taint appeared, decentralized exchanges emerged as a need. And they did because centralized exchanges were central point of failures. Today there is a volume of more than 2 million dollars worth of bitcoin, with over 900 trades, proving that it works: https://bisq.markets/.

Now, mining in a decentralized manner but with attractive conditions is what's needed.

Good news. Miners deciding the candidate block's transactions is step 1. Step 2 would be to decentralize their coordination altogether, because now the government will be hostile towards the mining pools that'll adopt this.