It's impossible to get the entire network onboard with that though, much like it is possible to stamp and track some gold, but not all gold. You're also not counting the bitcoin treasury companies which are creating credit systems with actual credit (not bitcoin) backed by the bitcoin and each entity tracked and registered so that investors can choose which firm to invest in with a high degree of transparency. The ability to track the funds is a feature. Your argument leaves the door open for a large subset of the UTXOs being fully fungible and private, namely paranoid cryptoanarchists like us. Bitcoin is useful for creating a highly transparent credit system, but it is not going to be turned into a single centralized social credit system. A fork of it might be, unfortunately, but there will always be that escape hatch for libertarian radicals who just won't give up.