I am happy to see someone raising this issue because I once talked about it in some of my posts, but the user of the forum seems to be careless, and I count that most people only care about the benefits of Bitcoin, while they don't care about the decentralization and privacy.

What you stated in the OP are major reasons why I never celebrate much the adoption of Bitcoin done by the institution, major investment organizations (like BlackRock, etc), and the government. After all, these groups always like to force control of things in the market they participate.

About the devs, I believe most of them care about the decentralization and privacy of Bitcoin based on what happened years ago when there was a debate over the BTC fork, which led to a split among devs, and when people like Vers went to cause chaos. But, i don't know if their enthusiasm for BTC decentralization and privacy will change if the government puts them in a condition that's unbearable for them.

I believe the major problem we have about decentralization and privacy now is with every Bitcoin holder and enthusiasts who dont priortize privacy with the inclusion of those who are switching from self-custodial holding to custodial holding, and BTC ETF investment which main concept is to treat Bitcoin like JPEG.

Yes, but the decentralization can be tarnished if individual holders who are moving to BTC ETF holdings don't stop. This is why we need every individual more than ever to prioritize self-custodial and stay away from ETF investments and things that will make it hard to operate a node.