Your theory is valid. I have also questioned the volume after the censorship action, but I believe privacy is subjective. It's like your window curtains; they keep your neighbor away, but then someone could have access to your CCTVs or phone camera and watch while you sleep, I believe many people coinjoin their coins just to "hide" from other people, not to hide from chain analysis/governments. Thus, using a government-friendly privacy (or lack thereof) service like Wasabi coinjoin might be an even better option.

Think about it this way: someone who wants to coinjoin to maintain a good level of privacy against friends, co-workers, customers paying them in BTC, or any other reason where the privacy you know isn't the center of it. To that someone, using Wasabi is probably a better option. They could think that since this service goes through a government filter, what comes out of it is going to be "clean" coins, making them safe for future cash-out.

On the other hand, if they use a non-government-friendly service, they could be "accidentally" or "intentionally" mistakenly identified as a scammer/terrorist or whatever. This is always a possibility as long as criminals use coinjoin, and many people believe in tainted BTC. Many people want to steer clear from anything gray—let alone black—so they may choose to use a government-approved service.

When I define privacy to myself, I take it as a whole package. It's myself against the whole world. I treat everyone else looking from the outside as an intruder. I believe you and many other privacy-oriented people define privacy the same way, but we can't assume that everyone thinks of their privacy the way we do. Many people are willing to KYC themselves to some random exchanges just to get an airdrop of some worthless coins. And the KYC process isn't just "write your full name" and off you go; they now take selfies, write some information on a piece of paper. Many of them won't mind sending their naked pictures to those CEXs but still might want to hide their coins from their wives, employers, or God knows whom.

Here's your revised text with spelling and grammar corrections:

Personally, I believe that eventually, the entire crypto space will be heavily KYCed. I don't have much hope in the crypto community to fight for their privacy. The majority of people invest in crypto to make a profit, and most of them don't appreciate all the beautiful things BTC has to offer them except to make them rich. So, I won't be surprised if all that volume comes from real users who believe it's completely normal for the government to spy on them. Mind you, these aren't all just regular users; even people like Peter Todd advocate for Wasabi, calling the Samourai team scammers and being fine with chain analysis spying on them, so go figure.