... and the primary reason is fungibility.

Yes, privacy is important but even if you have "nothing to hide", you don't want a money that is not fungible. If you have to care about the taint of your coins, Bitcoin failed.

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not only that, having your entire financial history exposed because of one mistake to potentially everyone under the sun is something we havent internalized yet as a real threat

also there is noone with nothing to hide, show me a person and I'll show you something in their purchasing history that they would prefer to keep private.