Thanks for long list of references. I doubt I will ever get through all those!
My guess is if Bitcoin was as private as Monero, there would be alot more severe backlash and resistance to it from government / authorities. So we'd end up having something that would never get mass adoption, or momentum would be hindered which severely reduce its growth.

100% privacy isn't needed 100% of the time. So even if Bitcoin doesn't solve privacy issue completely then I could literally just switch to privacy coin as and when required. It seems like a good balance. 
Makes sense to me. 

If Bitcoin really isn't private enough, then over time, we will begin to realise this practically and switch to Monero or different alternative privacy coin. In reality I think people will opt to give up privacy in the case of Bitcoin because it is the largest decentralised network in the world, which makes it more secure and much bigger than Monero. Therefore Bitcoin perceived as safer. When we really need the privacy which clearly isn't 100% of the time, switch to privacy coin.

From my understanding Monero isn't going to zero so will always be around. Even though it is smaller decentralised network than Bitcoin it still serves its purpose when privacy is number 1 priority and Bitcoin falls short o  that particular instance whatever it may be. Because of its smaller size (market cap / size of decentralised network etc.) compared to Bitcoin it locks out the massive companies corporations. So the individual self sovereign still wins. 

Monero is a better privacy coin than Bitcoin hands down. But that doesn't mean Bitcoin wont be the main no.1 cryptocurrency used across the world, ubiquitous in every country.
That's the way I'm seeing it in my head. 🖖

 

 You understand. That your argument basically says. There is no need for Bitcoin as fiat already has 100% reach and it us so much better integrated into all systems. 

 But bitcoin still fixes inflation issue. Stops countries from printing when they want. Prices of things will more accurately reflect reality rather than governments supporting massive industries. Stops endless wars etc. Etc.
The lack of Bitcoin's privacy can be viewed as a good thing too, stops governments from behaving corruptly because its all transparent. They can't hide. 
Obviously I've already discussed disadvantage of lack of privacy to individual if government makes something illegal and then tracks the person breaking the law through bitcoin. At which point I would consider use of Monero or another privacy tool either another coin or bitcoin may well adopt in future through secondary layer.
Bitcoin standard is better than Fiat by a factor of, I dont know, massively.

It is hard to project that far ahead. There are factors variables we all haven't considered or not aware of which could push towards either direction. 
The way I see it if Monero is to be the new Bitcoin, then even then Bitcoin needs to massively succeed first. Monero's privacy is too much to be accepted by institutions and government. 

Sometimes you can't jump straight to a solution has to be done in steps. Thats my two sats. 🐵