Non of the above has yet compromised the concept of bitcoin being decentralized, source to store values and the alternative means of payments.
Infact, the blockchain is growing stronger and bitcoin is possing it potentials on regular basis and that is why it is seem too valuable and lucrative that governments and high institutions begining to adopt it for investment and economy reserve.



Even if you were in the position of Satoshi Nakamoto and you have such zeal for bitcoin, you would not expect the government to overlook it when it has potential valuables as it is today and then you think government would not want to hike it decentralization to be centralized were they would be in control of it just as the battle is today.
So Satoshi won't be surprised about the whole thing. Infact, he is happy bitcoin is doing so well that is why the governments are being interested at its regulations.

And on the Contrary, I have not heard of the mention of Satoshi's death to assume if he was alive to withness all that happening around the bitcoin indulge created. He lives as much bitcoin keep to exist because he has not been revealed from origin to say his absent of now signifies his death.

I don't know exactly what Satoshi would think or if he would be pleased about it, however Satoshi created a currency that has a lot to do with freedom and censorship resistance, so Satoshi would have known that it is possible for adoption to get to this level, and we cannot stop any person or institution from buying BTC.

Take note that even if the government make BTC a strategic reserve, it does not mean they control the network, no central authority can control the network, they can only manipulate the price of BTC.

It's a difficult question because we know what Satoshi wanted bitcoin to be but at the same time he probably knew that it would have been difficult to reach results exactly how he wanted, sooner or later he would have to compromise somehow. The fact that today bitcoin is still completely decentralized for me is a huge win.

Emphasis on "need" added. What it eliminates is the need to trust a middleman. If you want to go through a middleman, for whatever reason, that should be fine. I would very much doubt that Satoshi would be against freedom of choice.

And that should answer on all the topics about "Bitcoin failing because majority of people leave coins to exchanges". People are free to do whatever they want with their coins, and their preferences change nothing about the network, or the concept.

Why think institutions and the governments holding bitcoin as reserve is a sabotage compromising the concept of bitcoin when it has potential values for economy reserve against inflation which has also attracted Investors to Invest their funds on?
If you think the stacks of the high institutions angries Satohsi, maybe you should be let known that the US government holds a total value of 207, 189 bitcoins currently while Satoshi Nakamoto holds a value of 2 million bitcoins since 2009 to 2010 from his mined bitcoins and up to date he is still holding it.
Hope that intensify to you that he does not have problem with the stack or holding of bitcoin as reserve by any entity?
Perhaps that does not mean those bitcoins are being seized by those entities. They literally bought them with their money and holding as the ideal of Investors holding which is to make profits or reserving it there so deflation of fiats does not affect it on diminishing of values or economy inflation does not ridicule the government reserve fund probably on the case of crisis such as natural disasters like hurricane, earthquakes, wars or practical example is such as the recent COVID-19.

It's not that we can stop anyone from buying bitcoin isn't it. It depends on the individual purchasing bitcoin on how to use it.
Now, if it's the government itself then I guess we don't really have a choice right.
All we can do is buy bitcoin and use it however we want it or hold it as along as we can.

Satoshi didn't create bitcoin in order to control it or control how it works;
Satoshi didn't create bitcoin in order for it to fight against fiat;
If US uses bitcoin as a reserve, it's a win win case for bitcoin;
If the government wants to control bitcoin, it cannot happen, the highest is that bitcoin will have a fork;
So, Satoshi himself knew he could not predict what bitcoin will be in the future;
So, we shouldn't be repellant to changes.

Everyone has the right to buy and hold as much bitcoin as they want, and what they do with it is their own concern. What should matter to us is the one we hold in our private wallet, which is what we have control over, and no one can detect what we do with that one. The government holding is their own, and they have their purchase for buying; their buying pressure can increase the demand, which in turn will create a price increase. 

The only length the government can get to is to buy as much as they can, reason and collaborate with each other, and hold a large amount of bitcoin, which can help them control and manipulate price to some extent, but they can't control how we spend the one we hold in our private wallet.

i believe that Satoshi is smart enough to know that with time, a lot of things will change about his invention most especially as it relates how the government choose to relate with it and how the effect of a potential adoption by some government and private institution might affect it extent of decentralization and censorship.

so far, nothing much has change and whether or not Satoshi is alive or dead, bitcoin is pretty much decentralized and still looks almost the same way it was at the point of it creation. we are still at the early days of bitcoin and in the future, regulations and institutions and government ownership of a greater fraction of bitcoin might pose a threat to bitcoin. that is what looks like a reason to be worried to some extent but other than that nothing looks out of control at the moment.

even if we assume a worst-case scenario where in the future the government takes control of bitcoin, what can Satoshi really do about it considering that his identity is still unknown? he's has done his part by providing bitcoin to the world and if the government succeeds in bringing it down or controlling it and allowing us to depend only on the fate that is getting worse by the day, we will have no option than dealing with what we have and that will take nothing out of Satoshi.

There is no denying that we have not used bitcoin for the original purpose for which it was created. But even if we use bitcoin as a speculative asset, that doesn't take away from its decentralized nature and I think the decentralized nature is what satoshi was more concerned about when he created bitcoin for us. As long as bitcoin doesn't lose its decentralization, I think satoshi will be happy with what's going on.

Governments are the ones who control the world and this world is theirs so regulations are inevitable and it is only a matter of time. But despite government regulations, we can still use bitcoin without permission or third party intervention, bitcoin is fine.