Bitcoin's central purpose was the evasion of government oversight into transactions.
Not just government, but commercial entities as well. Companies like card providers and commercial banks hold tremendous power in the fiat world. The idea is that no one is in a position to block or reverse a transaction, no one can freeze or confiscate funds. That's what we generally refer to as 'censorship resistant'.
Yes, Bitcoin was meant to (but really doesn't) do that too, and blockchain can accomplish this, but again,
there are easier ways of accomplishing this besides blockchain. Today, consumers trust VPN companies like NordVPN to keep their actions completely private from everybody but governments with valid subpoenas. They make it their whole business to do this, and the minute they fail at this, they lose all of their business and consumers switch to another provider.
And centralized model could do what the VPN providers do and not use blockchain. Yes, they could fail at this, but so could any public blockchain project, as Bitcoin has for example. There are no absolutes in this regard--no matter what, you need to be diligent. No computer architecture can guarantee you safety--it takes a lot more than just technology.
Blockchain's sole unique advantage is the architecture's ability to create a "government-proof" means of transferring value. If you don't need that, then blockchain is an enormous waste of time and resources.