I agree, and they even prefer to have something like Bitcoin with everything being transparent on blockchain.
All they can do is to try and ban privacy tools like mixers, and say that only terrorists, hackers and criminals are using them, and that is not true.
If they are going to ban stuff that criminals use than they should ban everything (if they can), but let them start from corrupt politicians in government and their families.
Well, we can sympathize with governments because fiat currency is still the best option they have to manage the economy. Crypto can be very good in fighting inflation but implementing crypto on a national scale can come with many risks and governments are not yet ready to experiment. I don't think the government wants to track everything, they're just looking for ways to attribute negative and dangerous characteristics to crypto, especially BTC, such as being widely used for money laundering purposes. Mixers are just one target they are aiming at, they don't want to make transaction data transparent, they just want people to have a negative attitude towards BTC.
From a positive perspective, I also hope that the government will find a way to manage the crypto market, thereby helping crypto to become more widely accepted, mature, and Mixers will be allowed to operate legally when they can support governments in preventing money laundering. That's just my expectation, I don't have any feasible solutions for this yet.