1) That is a direct argument against anything that is a global good. If we do something that is good for everyone, bad people will benefit from it because they are people too. Bad people benefiting doesn't, in isolation, tell us anything about whether something is a good idea.

2) Money being hard to trace is a bigger problem for authoritarian regimes than it is a help. Places like Russia, China, etc, rely fairly heavily on financial controls to stop people sending money to places with the most reliable legal system. If you live in a world where the tax offices can't track money, authoritarians will struggle more than anyone else to raise funds.

Your second point is questionable at best.

Making money hard to trace most directly hurts countries like the USA that are used to using the financial system to enforce their will. For example virtually every crime worth doing turns into money laundering when you try to turn your profits back into money you can use in normal ways.

The bad actors that you name generally come into conflict with the USA at some point, and the USA tries to use the financial system to punish them. Conversely those bad actors do not want effective financial controls, because the may exploiters of their poor financial barriers are powerful insiders who manage to funnel money to their own bank accounts. The rank and file will get punished for the attempt, but who gets punished is political. Top leaders are always taking money, and don't want it to be trackable.

Is that bad for the country? Sure. But so is dictatorship. This is unlikely to convince dictators to step down though.

2) depends on the country, and imo is largely an outdated view. NK for example has undeniably seen enormous benefits from cryptos, much more than any potential drawbacks. China has such extensive societal level tracking and tracing in place aleady that even crypto tumblers are unlikely to have a significant impact on the amount of money the government fails to track.

2) the amounts crypto is used by regular people to work around some gov restriction is absolutely negligeble, a sand grain compared to the scale at which the gov does it.

And if it somehow becomes a problem it's only enough to make it illegal and report a few visible arrests in media for 90% of ordinary citizens to never even think of it again.

In Russia ISPs are already obligated to install special gov-provided black boxes (https://roskomsvoboda.org/en/post/usloviya-tspu/) that pass all traffic through them and as of last week VPN is illegal to promote or recommend in public. Using VPN to access restricted content? also illegal. Don't encrypt your DNS? Your visit to crypto exchange or VPN site is going to be noticed.

(And exchanges that are allowed to work in Russia legally are obligated to disclose transactions to the gov by law obviously)

So think about it. Those boxes, the police and military to ensure compliance and make necessary arrests, morning pre-trial cocaine for the judge, whatever. This machine is fueled by sanction workarounds instrumented by Western crypto-bros thinking they are helping "free" people in those countries.

Who said crypto was a global good?

It's a giant stretch to claim that China has a "less reliabe" legal system than the US.