Also if it were absolutely fungible (private) then we would enter the outlaw phase much earlier and it would have much less chance of surviving. There would be no market demand for chainalysis because no regulated entity would be allowed to touch it in the first place. And if it did manage to be successful despite being fully private it would become a victim of its own success because privacy at scale benefits large corrupt groups more than it benefits individuals.

A conscious society worthy of the name would flourish both on a transparent as well as a private standard. Since the world is not perfect and never will be, we will have to live with degrees of freedom. In the past (tribal society) everything was public, besides thoughts. Most of societies advances including ever more sophisticated rug pulls and countermeasures are based on privacy advancements. Societies will thrive where privacy is a guaranteed default for individuals while trusted groups can openly share all information between each other for a social relationship net.