Cracking down privacy is a classic arms race. If you don't know how to handle your tools you're easy prey. Same goes for protecting your coins - no offense.
Don't coin mixing services cut down on that possibility quite a bit?
To a degree. And it all depends on volume. If you want to mix 100 BTC within 10 days, you may need to have a minimum of 10,000 BTC traffic in 10 days from uncorrelated sources (*number made up for the sake of illustration). The exact ratio between traffic and decorrelation target should be obvious to the coin mix operator. What you want is that each outgoing 1 BTC contains an equal amount of coins from all incoming sources. If you have 100 sources, that means 0.01 BTC from each source. Also you need to split the outgoing payment temporally, for the obvious reasons...
Right now, exchanges are a cheap way to mix your coins. However, many exchanges will soon prevent anonymous accounts and go through a verification procedure. This allows law enforcement to connect coins to personal information at particular choke points within the system.
And if somebody comes up with a technical solution to mix coins anonymously, expect the governments to go after that - with force.
That's the perfect answer!
