On the other hand, I don't believe cryptocurrencies that offer too much privacy will get adopted either, since they will be used for criminal activities and eventually get banned.
My feeling is that we want a currency that offers privacy to some extent, without revealing our transaction to the world but still be possible for law-enforcement to track illegal activities.
What do you think?
I don't think a chain that allows 'law enforcement' access that it doesn't allow anyone else is a good solution at all. Do you mean that law enforcement would be able to track the blockchain because they have the vast technical resources to do so, or because they are granted special access that other people are not?
There is an ideal balance between anonymity and transparency to be found. Does btc have it? How much metadata that is linkable to transactions is too much?