I think that it will be very hard for us (us as in people that lived on the internet before the general availability of it and are generally a bit more aware of some of the privacy dynamics) to come back from losing this battle. I fear that with every step of the way, we will lose as much as we gain.

For Bitcoin, this isn't a huge problem, though it will make it harder to offset corporate and government domination with real decentralization coming from real people taking control. The incentive for bitcoin is still fairly visible whenever there is a "financial crisis" - i.e. when the govs and/or bankers mess up.

For freedomtech in general, it's much harder, because the benefits only become clear for most people when it's too late.