And don't confuse "nearly exclusive choice of criminals" with "only criminals choose it".
After all, cars are the nearly exclusive choice of bank robbers for getaways. But I don't think you are suggesting that every person driving in a car away from a bank should be documented and reported to the authorities.
I do think reporting every single BTC user to a three letter agency is pushing it though. I would understand doing that for accounts that raise red flags beyond simply using BTC, but doing that for every single one seems a bit paranoid and ineffective anyways.