I don't feel the cypherpunks were wrong about anything at all... They foresaw the correct outcomes if they hadn't taken action... And were successful in their fight against these things, like the clipper chip and of course the export of munitions. And then later things too, like, ahem, central banking.
Were the "allies wrong" about Hitler conquering all of Europe?
No, but cryptography didn't empower citizens to overthrow governments, to establish Anarcho Capitalist communities, or allow the commonplace assassination of officials (Assassination Politics). They were right about a lot and an important group. The cryptographic-enabled dystopia never came.
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