So...
This all leads to the several obvious questions:
Whats the BEST way to protect yourself? With a condom.
Whats the BEST way to protect your wallet? With a brain wallet.
Whats to stop them from "Seizing" ANY wallet TO which bitcoins "USED" for illicit activities ends up? Lock your front door.
IE, Someone buys drugs on SR, the dealer then buys/donates/trades bitcoins with someone in a completely legal way. Whats to prevent them from following the blockchain path and arresting the innocent third party (you, me??) for receiving "drug money". Nothing, because you're a prisoner of your governmental system.