I do hear (and agree with) the risks you've outlined. Realistically, majority of those problems are already present in the current system. It's trivial to freeze someone's assets, or to prevent liquor stores from processing transactions after a certain time of day. These problems are exactly why DeFi is so necessary.
The digital dollar is a sad attempt to fit into the modern world. "How do you do, fellow kids?" meme comes to mind. Too little too late, IMO, and on a practical level, it changes nothing (for the better).
If we don't challenge the status quo, things will never change. DeFi is being fought against because it's a colossal risk to the useless, parasitic middlemen entities that make up the current system. No doubt there will be challenges along the entire way, but I have to believe the good fight will be won.