Is this enough reason to hate TornadoCash?
Is this why privacy in this crypto space will always struggle?
We have good people who want privacy for good use only, what can be done about people who want to use privacy to hide their enormous crime?
Not enough. There would be more tools to protect privacy, we can't hate them all. We must hate those who misuse the system. Even corruption happen through banking system, do we hate them? Blackmail happened through fiat cash, do we hate them all? Definitely not, we can't hate the system, rather we should hate the criminal. Rather than blaming a system, we should protect our own system where incidents happen, like exchange and other financial ecosystems. So hacking will be reduced.
Then who are we going to trust, as someone who cares about privacy, do you think we will want to use such services again when they betrayed their own utility?
What do you think should be the proper process to go about this?
If a system is betrayed by their own system and policies, then who is going to use it? If that kind of service starts blocking funds, whether hacked or normal, then no one is going to use it anyway. At least I am. The proper process is to prevent hackers; you can't control any mixers or decentralised systems. If it's controllable then will be useless and no one gonna use it.