Privacy cannot be accomplished alone, it inherently requires a group effort to be attained.
Privacy is a complicated subject. It's not always a simple binary thing, private or not private, seen or unseen. Seen by whom? Private from whom? Private to what degree? If you are walking down the street with a mask on your face no one can see your face, so that means you are private, right? What if you are the only one wearing a mask? Are you private then? People might not be able to see your face, but they can see that you are the only one wearing a mask.
. Even if you are of identical frame, wearing identical clothes, identical height, the whole shebang, if I can just watch you uninterrupted from the moment you leave home to the moment you get back at night, I can still surveil and associate every activity you engage in to you. Even if I don't know what your legal name is.
That is how complex privacy on Bitcoin is right now. That is the lengths people have to go to in order to achieve it, and the level of privacy gained is only proportional to how many other people go to those lengths. That is not a viable solution.
This does significantly raise the cost for acquiring that information versus just directly querying exchanges, it doesn't make it impossible, but it makes it more time consuming. And that is the point. They are going to surveil the blindspots, they are going to try and extract information from everyone who uses them. So they need to be absolutely everywhere. From every A to every B.
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