To elaborate, the flip side of this is the point you are making well: you can't use your sats for anything big/useful unless they are tagged and bagged. Sats visible enough to use in a jurisdiction are subject to jurisdictional risk. My take away: you need both. Private and public. Hard to confiscate and even harder to confiscate.  

 Agreed, but we gain a greater advantage if we can get everyone to self custody.