Bitcoin failed because it has no privacy.
Bitcoin is not a private blockchain and it was not designed to provide complete privacy to Bitcoin users. If you care about privacy, and want it, you need to use Bitcoin wallets, UTXOs carefully, together with other tools for hiding your IP address, and leave a humble life too. Many things to do for achieving privacy, and it's true and the same in life, not only in finance or blockchain.
Bitcoin privacy resources.https://www.privacytools.io/It's pseudo anonymous, so yeah.
It wasn't envisioned to be something would be full-proof resistant to such factors, so it's okay. And as you said, there are tools to make the situation better.