>>> I gave an example of why tracking is useful: the well-known case of bitcoiners being kidnapped and tortured to force them to transfer BTCs. If the payment is completely anonymous, well, no one can ever find the culprit.

Poor opsec.

>>> But this also applies at much simpler levels: you pay a company to do a job, they do it but it's defective, or conversely, they do the work and don't get paid.

1) the private key of the transaction proves that the transaction was made;
2) a pgp/gpg signature of the parties of the deal is a prove;
3) etc. etc.

>>> no matter how much you try to maintain a modest lifestyle, if you have some cushion, it shows. 

Poor opsec #2.

>>> On a larger scale, we either turn things into the Wild West, where everyone is armed and ready to defend themselves, or we create a society where the need for self-defense is marginal. 

Freedom > security. At that moment, I realized you were a leftist.

>>> it can also be a Democracy if, for example, you implement on-chain voting and create a government structure that isn't oppressive, but still has a role. It has a role in road maintenance, public healthcare where it exists, defense... this role has a cost, and that cost has to be managed somehow.

I'm speechless... 

I hope you've cleared this message with your government beforehand. And I hope you're happy with what you have, thanks to the government robbing you blind through inflation, taxes, and regulation of every aspect of your life.

Good luck building communism/socialism. [no]