Exactly. Ironically, in many, many ways crypto currency is far less private. Put aside government surveillance for a moment. Let's say I send some money to a coworker or friend to buy a game from him. He goes home that night and gets bored, so he decides to look through my wallet's transaction history for the hell of it. He now can see that I sent some money to PornHub's wallet, the value of my weekly paychecks, and the money I'm sending to his sister's wallet for some reason.

Even if I transfer money to a separate wallet before paying him, all he has to do is look at that wallet's transactions to find my real wallet, then we're back at square one.