So let me try and figure this out this is a little out of my league but here it goes:
Effectively you are creating a mixing service within the Bitcoin network itself? Making privacy better because no one can track where you sent your Bitcoin because it is split up and combined with other peoples transactions. Surely this has already been done by several mixing services?
Wouldn't this create more legal problems for Bitcoin? If this is what you want to achieve surely it's illegal because this can be abused very easily.
It also has technical benefits for the network in terms of reduced overheads.
btw, bitcoin is legal, it has no "legal problems". You are probably confused by the enormous legal complexities of handling government fiat.
I was talking about how people compare Bitcoin users to criminals we all know it happens because of laundry for one example. Then this would just give those accusers more leverage because with this enabled technically everyone would be breaking the law.
Making Bitcoin illegal in every country if this is enabled. Unless I'm not fully grasping something I think that's what this is all about and could cause a few problems.
I can see why this would be beneficial to the network and the general user of Bitcoin but I can also see it enabling thieves even more.