It does work very similar to valuable assets stored somewhere though, and the law as well as other means and methods are long established.

You should look up coin joins (tumbling) as well as Monero protocols. It will blow your mind. Introducing this kind of complexity into tracing assets makes things very difficult.

The real world value entry and exit points are ever present.

Mix it all one wants. It remains extremely difficult to avoid others knowing value, otherwise unaccounted for, finding it's way back. That plus a shake down of everyone the person ever knew remains potent, relevant and effective.

I have followed the rough tech developments. None of what I wrote is impacted too much. Obtaining real world value of any significance is where all the weak points are, and where long established means and methods play well.

People are super leaky. Records everywhere, redundant in many cases too.

Like I said, good luck!

Forward your adoption time frames by 100 years. Maybe even less.

There are no longer "entry" and "exit" points because everyone uses it and accepts it. Crypto is a good as cash. Anything you can do with a suitcase full of illicit hundred dollar bills today, you can do with your phone tomorrow.

In a future where cryptocurrencies are the new normal, probably only crypto that allows governments insight and seizure will be legal. All others will be illegal, and moving in and out to legal currencies will be the exit and entry points.

It's probable and possible, obviously governments will want to control cryptoassets. But this point has been discussed before.

The trade of "illegal" assets goes on and will continue to go on to the end of time, whether that's marijuana or prostitution services. The spectrum of legality will vary in different parts of the world. Like many contrabands, there won't be enough resources to enforce prohibition of it, the population may not see the point of its illegality (as there is not an obvious social cost), and eventually the tides turn.