Two satoshis are exactly alike much like two atoms of gold are indistinguishable and can be perfectly substituted.
This again is incorrect.
We discussed a few posts back that two satoshis coming out of the same transaction (even if different outputs) are indistinguishable (though only if no social convention develops which would distinguish between outputs of the same transaction, as I explained).
But two satoshis
from two different transactions are absolutely distinguishable. The have different histories and therefore can be trivially distinguished. It therefore becomes non-fungible (i.e. non-interchangable)
if people choose to attach some significance to that difference. The technology or physical properties do not determine fungibility here, people do.
I can taint gold and make it somewhat traceable using radioactivity. That doesn't make gold non-fungible but only traceable to a certain extent.
It certainly would be non-fungible if some important property were recognized to apply to the radioactive gold (for example if it were stolen). People would routinely check gold with a geiger counter before accepting it and you would not be able to substitute your radioactive gold for non-radioactive gold.
TLDR; When people speak of Bitcoin's fungibility "issue" they really are referring to a privacy/traceability one.
Not entirely, but I don't know any other way -- besides obscuring the information that makes outputs usefully distinguishable from each other -- to make the intrinsic properties of the technology demand fungibility rather than relying on a social convention to do it.
Obscuring information on the ledger doesn't in and of itself provide useful privacy or anonymity though. For example, you might be still required to present (physical or electronic) identification whenever you spend coins. You would have essentially zero privacy and anonymity but the coins themselves would still be inherently fungible.
Merchants are forbidden to accept Monero: since we cannot tell where you money comes from it is not legal and you should use the transparent alternative
You are not the first to observe that non-transparent ledgers may be banned rather than regulated. That's not unique to Monero though. ZeroCash is apparently coming, Confidential Transactions make the history less meaningful, etc.