The real issue seems to be the fact that Bitcoin frees people from the fiat crime(s).
Crimes?
It gives people control over their funds it doesn't really free you since you're still bound in the same economic ecosystem, if we don't bring returns and profit in the equation if just half freedom, since well, everything is still working in fiat.
I believe that if we were able to register our wallets, together with the public keys associated with them, but we kept the private keys secret, then most of the declared objections would no longer be relevant. Of course this would need to be an optional registration, but taking advantage of it could help to expand the use of Bitcoin.
It's not a new idea and it has already being put in practice in SK, there you can withdraw from exchanges only to a wallet that is owned by another licensed service and you have to prove you have been KYCed for it, so a closed system.
So in your scenario rather than blacklisting you have whitelisting, only approved addresses are accepted, pretty doable but it will be terrible for bitcoin, it might gain legitimacy but it will also strat to lose its main purpose.
What are they going to do if people don't register your addresses with them? Are they going to stop you from using Bitcoin? They probably can't and they can't do anything about it. They have no way of knowing what addresses you have if they don't register it and if you do; hey, I'll let you track me however much you want!
They can start that slowly
- exchanges ask you for your addresses D/W and you sign a message with them and they are stored along with your data
- payment processors do the same, again logging and whitelisting addresses
- then they come with restrictions, you can only pay from a white-label address and miners in those countries that enforce this are also forced to mine only transactions from these known addresses
- they might even set up a blockexplorer with those whitelisted addresses
Slowly but surely cracks in anonymity will start to appear since more and more of the addresses and links between them will be known, and people will become worried about sending money to an address that identifies as suspicious, and slowly from freedom you go full dystopian madness.
I'm not saying it will be done but if you elect in enough countries stupid leaders they could try to do it and while not completely able to monitor everything they will do a lot of damage.