Ah yes, I remember that thread well. It's great to see so much active discussion happening on Bitcointalk even after all these years.

To answer your question, it is certainly possible to improve privacy protection in a Bitcoin-like system without generating and distributing new addresses. One approach is through the use of mixers or tumblers, which essentially combine multiple transactions in such a way as to obfuscate the path of funds.

Another approach is through the use of techniques like CoinJoin or hierarchical deterministic wallets, which can help make individual transactions more private by masking their association with particular addresses.

Regardless of the specific technique used, I believe that improving privacy is one of the most important issues facing cryptocurrencies today. By enabling greater levels of personal anonymity and security, we can empower individuals across the globe to take greater control over their own financial future.

Of course we also has to build systems that allow regulatory compliance & penalizes fraudulent behaviour.