Btw, has anyone paid close enough attention to the selfish-mining paper to observe that as the attackers hashrate approaches 50% of the network, his portion of the blocks won goes to 100%. 
You don't need to pay close attention. It is well known even without selfish mining that with 50+% you can reject all other blocks. I think Satoshi mentioned it.
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Bitcoin often has a single pool with 50% of the network hashrate.
There is a fundamental problem here.
There is a fundamental problem here.
Agree
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All the anonymity tech in the world is sort of useless against the state under this current situation.
Disagree. It is entirely possible the state has nothing to do with mining, nor will, and even with concentrated pools anonymity can still work. For example, perhaps the mining pools, even if concentrated, will jurisdiction shop the way the pirate bay does, or go more underground and become stateless (this could serve to decentralize them, since smaller pools are easier to hide). There are many such possibilities, not just the one guaranteed future of the state taking control of pools. That is certainly possible though.
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We need to fundamentally rethink the longest chain rule as it is currently formulated.
Not necessarily. Another solution would be radically reducing concentration.