I think once governments fully understand the non-fungibility of blockchain they will grow to love it.
However that doesnt mean I am a privacy coin enthusiast, I think they will be outlawed for that very same reason in many jurisdictions, and if that happens they wont gain enough "man in the street adoption".

My bet is that the fight will begin to revolve around decentralized exchanges, once you can filter your transactions through several otherwise unconnected blockchains, then I think there is really going to be no way for any single entity to understand your wealth and dealings. I can pay my taxes in coin A, do my grocery shopping in coin B, receive my salary in coin C and so on.

Therefore maximalism is really going to be the death of crypto, if we arent careful.