Interesting take. Bringing up resistance to state level attacks is a bit of a strawman because if the state is determined enough they can track down your cash transactions (serial numbers, cameras in shops etc.) Bitcoin can be used privately in most threat models as long as it's not acquired from a KYC source and as long as reasonable precautions are taken like coinjoin, payjoin, use of LN, etc. But I get your point about the Internet in general not being a great place for privacy. I agree that in an ideal world people would move more offline in response to this revelation but a) most people don't care and b) if we're honest about it, we kind of are already merged with and completely dependent on the Internet, for better or for worse. We are not putting the toothpaste back in the tube. So probably privacy is going to be a human fight rather than a human right, and we are going to have to spend a lot of time and energy in an attempt to protect whatever privacy we can, because I don't expect it will ever be the default.