What does storage cost have to do with government compliance? Now you are reaching. If anything it is easier to control Bitcoin because:
1. No privacy = less censorship resistance. You can find and target users more easily and threaten with prison or worse just like the Canadian trucker donation fiasco proved.
2. Mining centralizes on large corporate mining farms = easy targets for governments.
And we are still in your fantasy world where Monero has the same amount of transactions as Bitcoin *today* (it doesnt). If Monero grows to have the same amount of transactions as Bitcoin in the *future* - technology is not static, it also advances and gets better and more affordable for consumers.