Thankfully -- for now -- most merchants do not seem to respect any such blacklist/greylist. However, for exchanges, KYC regulation may end up having some similar effects.

Intel's no dummies. They know that a lot of investors have heard of Bitcoin and not a lot of investors have heard of monero. They didn't get into this business because they wanted to contribute to a decentralized currency. They just want to make money.

Considering that Bitcoin and other cryptocurrencies intend(ed) to operate in a decentralized manner, your point probably matters only for those who want to deal with centralized exchanges that follow such allow or deny lists. There are services and ways to connect with others to trade (though they may come with some more difficulty compared to a centralized exchange).

Isn't this why you have multiple wallets?

Using multiple wallets is just minor obfuscation, not protection. The funds came from somewhere and that somewhere is also knowable & observable.

Especially with transaction fees being what they are, shuffling money between wallets is just wasting money. And a lot of it.

So take your payments into different wallets,

avoid the "shuffling".

You can also use mixers, or friends, and do "one shuffle", and have the same result.

Point is, the only thing that can be improved here is app UX.