To be frank, only an extreme minority cares about censorship resistance, especially when it comes in a form of inconvenience. In the last 10 years, we’ve seen again and again even within cryptoheads, the choice of storing their money in a centralized place (Binance, Coinbase, FTX) rather than self-custody.

It’s just people have limited amount of time in a day, and caring that government X can trace their transaction is waste of time. Also, in the last 3 years of lawsuits, we’ve kind of seen how crypto payments are traceable as well if someone really wants to find the source.