Physical illegal activities are better paid in untraceable cash or trade (sex for drugs). Using bitcoin just adds a layer of traceability. It's not perfect but it works to the extent that the data can be clustered (e.g. drug dealer gets statistically associated with other dealers).
The point that you and the other detractors are missing is that bitcoin is used far more often for legal activities that are outside the purview of corporations and government. For example, someone can hire anyone they want for as little or as much as they can pay if that person is willing to provide a digital good. In the future the majority of forums will be run like that, get paid for high quality timely information.
I’m not a detractor.
>>>>legal activities that are outside the purview of corporations and government. For example, someone can hire anyone they want for as little or as much as they can pay if that person is willing to provide a digital good.<<<<
And that sounds illegal on its face, i.e. to evade taxes, minimum wage laws, evading cash reporting laws, illegal gaming, avoiding political contribution reporting, supporting subversive activities from America to China, child pornography etc.
You take one, you take all. You kill one, you kill all. You design a system to subvert the laws of repressive regimes, it will be even more effective at subverting the laws of so-called free countries. But both will be just as eager to repress such systems for their own purposes and become equally intrusive. That is at the heart of the NSA issue.