Transacting anonymously AND privately was the goal of the cypherpunks. The prehistory of Bitcoin that lead up to it's creation. There was no "hodling" or "store of value". That is all a very new narrative bolted onto Bitcoin. Which is fine as a goal, but don't conflate these things.

I get the sentiment. But imo these tools will always be a minority thing. All non-vaporware Bitcoin scaling solutions so far have been some sort of sacrifice of core foundational attributes like self-custody, permissionlessness, p2p, etc. The only contender to Monero's privacy is Ecash and that is custodial and the mint can secretly print tokens out of thin air.

Even if there was a way to avoid the above the state is not going to let it be allowed on the white market.

I think you might be confused. Anonymity = hidden identity. Privacy = hidden actions. Lack of one can be weaponzied to reveal the other. You can be psuedonymous on Bitcoin but your transaction graph is completely visible. Even if you coinjoin (obfuscation - a weaker form of privacy vs encryption), with more data, or your own future mistakes, that can be undone. Even older DNM admins are being busted a decade later because of their own mistakes using Bitcoin. If they can't keep their tracks hidden on Bitcoin the average person will not be able to.