>if everything you do is legal and will always be legal, decentralisation is net negative

why? surely there are practical benefits other than "it's easier to break the law"?

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It is not "break the law" it is "don't care what is the law" ... And if you do care, then no there are no benefits to decentralisation, only costs. That's why there is not a single decentralised system at scale that is not made exactly to be apolitical.

There are benefits for distribution (resiliency) but that is an entire different definition of distribution... It remains organisationally centralised and only distributed to the bare minimum.