Well how is the problem of crypto -> fiat unique to Monero? Same thing would apply to any crypto even Bitcoin, but it's even worse traceability wise. Isn't the ultimate goal to eventually use crypto *directly* anyway?
Even so, it is easy to send cash fairly anonymously by mail if you are familiar with these things (no return address or fake one). Most crypto ATMs also only require an email or phone number (you can use burners for both look at my profile link). Even if you use payment apps they don't see the other side of the transaction. They have no clue why you are getting sent money (and no red flags will trigger as long as it isn't a ridiculous amount at once). But this is all tangential to using crypto directly anyway and not a unique problem to Monero.
What will you do when the state says you can't use Bitcoin unless you take on burdensome taxes (already kind of this way)? Or that you have to use Bitcoin with an "approved" custodian (IOUs will allow them to manipulate supply for their citizens)? Or that it is illegal to use, period (for whatever bogus reason)? You've done nothing different, but now are in black market territory because some lizards in DC wrote some words on paper. I would argue that Bitcoiners are already "rebels" in the states eyes by the mere act of being a Bitcoin user, just look at their increasingly hostile actions against crypto in general, but the law is just slowly catching up to reflect that.
I don't really mind that Bitcoin declares itself the "best SoV" or "hardest money" and don't think Monero is competition with that. Monero is just trying to be p2p digital *cash*. A means to transfer value cheaply, anonymously, privately, and without permission.
Again, I don't mean this as an insult, but your vision that the state is just going to roll over for Bitcoin and let it usurp fiat seems naive to me. Nations could use it as a reserve currency amongst themselves, but there is no way they will let their own citizens use Bitcoin in an unrestricted uncontrolled way that doesn't give them the advantage. That is completely ahistorical. You should always assume the worst case and build around that not hope this utopia will just emerge from Bitcoin. I could argue you are ushering in a financial panopticon for our descendants.
The cypherpunk origins of Bitcoin are more tightly aligned with Monero, so this "trying to hide" stuff as if it is some foreign idea is nonsense. Private, anonymous, untraceable digital cash was the goal:
nevent1qqsq0wvj296nng95kwpw7p9trkt7uqvw97vgzqjal86tmrj46da2ujgpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsyg90wsx3nzathrrmstg2guvwkd2tk0m2lx5cvwdct499eufhrj46s5psgqqqqqqs3jmj9t
