Bitcoin's original purpose was to create a method of transacting that could not be traced by governments, and could not be stopped by them.
Since the blockchain is public, then i am sure anyone using BTC should know that there is a possibility of their coins being traced if they do not adopt privacy solutions. The orginal purpose of BTC was instead to be a p2p electronic cash that is censorship resistant and permissionless, and it is still that, if you do not use custodial and centralized services, you cannot be censored and your coins cannot be confiscated.
Bitcoin is no longer "censorship resistant", by which we mean something that can be safely used by those breaking the laws of their government. It hasn't been for years. (No Bitcoin user values "permissionless" and they don't know what that means or care).
You can see what most consumers want by observing that almost all Bitcoin user use centralized wallets, which are no different than bank accounts.
I don't know where you are going with your arguments, but what makes you think that now BTC can be stopped by the government, i don't see any single point of failure.
I never said that BTC can be stopped by the government--no world government wants to do that because there would be no point.
When I say "blockchain" here, I mean the blockchain
architecture and I mean it's use in new projects going forward. There's no reason to use blockchain to create the next Bitcoin.