Well, it's not really possible to regulate privacy coins because of the nature of the txs.
Sure, it's impossible to
stop the use of coins like the ones mentioned in OP's announcement, if you eliminate the markets for those coins one by one until they're all gone, who's really going to use them? As a practical matter, none of those privacy coins are used to buy anything (except maybe on the dark market, but I doubt even there) so with no way to even trade them, I seriously doubt people would want to own them--with perhaps XMR being the exception. Their community seems pretty hardcore.
I am not sure that the privacy coins are going into extinction any soon. By the way, the privacy coins are just like every other cryptocurrency running on the blockchain, just that they provide additional layer of privacy. As the government go against them, they device means to remain in circulation. This could be because they have shady industries and persons willing to use them at all cost just like the case of mixers.
Concerning the use case of these privacy coins, as you rightly mentioned, these coins aren't used to buy the early morning coffee or everyday groceries. They are mostly used for shady deals such as the ones that happen in the darknet, money laundry, and the most scary to the government is arms deals relating to espionage.
This is just Binance, thankfully, even though they're one of the biggest exchanges worldwide. It's still unfortunate that eliminating cryptocurrencies that offer more privacy than bitcoin seems to be the trend among exchanges. I did notice that Kucoin no longer lists PIVX, though I'm not sure about any of the others.
The privacy coins should also understand that they don't have future with the CEX. Decentralized exchanges could be their safe haven. Once a country bans the use of a particular privacy coin and exchanges in such country delist the coin, the price of such coin is always impacted negatively and that is the smoothest means for a privacy coin project to fail.