Actually this would indeed affect almost every fucking UTXO, even from exchanges, because the majority of tx could be linked on its way from the coinbase to your wallet to a "crime".
If an exchange by chance ever accepted tainted coins, ALL coinjoins out of that tx will be considered illegal.
This would be a nuke.
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Sure. And guess what happens when EVERYBODY is guilty of a crime? It’s nasty and dirty and corrupt and they arrest you just because they want to- which happens already, or it’s unenforceable. In any case, they can’t get cold storage coins without consent. If the goal is protecting my assets, Bitcoin fixes this.