Easier to hide than bitcoin mining, fair point. But in a world where its still illegal the risks are prison, so yes only 'criminals' willing to take the risk will do it, and that shrinks the number of people willing to mine, making the network smaller , less decentralized and ultimately less secure.
Discussion
At this point, we will have choice, comply to tyranny or rise against the dystopian CBDC system, if freedom and privacy is crime, I will be a criminal and glad to be
Ok, I see what you're saying you're right. I guess the sticking point would be whether something was still sufficiently decentralized and what range would be sufficient enough to resist capture.
If X achieves the same outcome as X+Y then the additional Y is redundant. Or at least brings increasingly diminished returns.