I don't understand. Why else would you use it?

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Wasabi is a system designed to protect the privacy of your bitcoins and your transactions by allowing you to manage the information about who knows what about each of your UTXOs. Its labeling system is by far the most useful and powerful mechanism to manage your privacy and reveal only what you are okay revealing. Wasabi lets you know who can know about each of your transactions, it allows you to avoid change that stops the tracing of your wallet from others, it suggests you better alternatives for your payments, it can select coins that are already known by payee so he can't learn anything new about your wallet, and it protects you from network observers and entities that want to collect transaction data and metadata from you; and it is not just "use Tor". Wasabi synchronizes the wallet without revealing anything about your wallet to any third party, it even allows you to pay in a coinjoin making the payment untraceable.

Those who use it as a mixer are simply misguided individuals who do not understand what they are doing or the consequences of their actions.

Why is it misguided? You can improve your privacy using it as a mixer vs. not coinjoining at all. I don't think you have to believe you're achieving perfect privacy.

The example above is extreme and users don't have to completely merge all their UTXOs after the coinjoin.

They are misguided because the problem is not to obtain a reasonable anonymity set but maintaining your wallet's privacy. The only way to achieve that is by managing your UTXOs and revealing as little about your wallet as possible with each transaction. That's something that coinjoins cannot help you with alone. The only way to do that is with a tool like Wasabi and a decent understanding of how it works.

I know the example is extreme; in fact, I was the one who said it was an extreme example. But the point is that they do that because they cannot see how their wallet's privacy plummets after each of those transactions. With Wasabi, they would have noticed it.