I'd argue about both the number of people who don't give a damn about privacy/centralization and the significance of it. I think the number of people not caring is high enough to have a negative overall impact over a significant part of the whitepaper. Like, I understand the need of more convenient platforms that cannot be at the moment anyhow but centralized, but in my opinion, promoting centralization and completely ignoring your privacy en masse means we're losing ground.
i don't think their number is that big, maybe it looks this way because they are more noticeable. for example we can never count how many P2P trades are taking place but we can always know how much volume a centralized exchange has.
Here's a little question: what do you think would happen if everyone tomorrow stopped agreeing to KYC and centralization and suddenly turned to Tails and Bisq, mixed their coins and went off the grid? Would adoption continue growing or would institutions and govs suddenly back out from supporting crypto?
a good question. but it is hard to answer.
different governments have had different view of cryptocurrencies. some government like Russian care a lot about traceability, the more blockchain analyzers pop up the more friendly they got. they don't seem to care that much about control.
governments in some other countries like Japan, Switzerland,... don't seem to be so strict about either control or tracing. they respect privacy more.
governments like US want full control of everything and invade privacy of everyone.
this means if what your scenario happened, it would divide the world more.
another thing to consider is the stage of adoption. if bitcoin had reached a good adoption percentage (a lot more than it is now) then there isn't much any government could do in that scenario. they would have to accept the reality that they have lost control. but at lower levels we might see hostile behavior. like those 7 countries that have banned bitcoin in early days when nobody in their country even knew about bitcoin.