The argument being made is: "Bad people are doing bad things. By providing privacy, TOR is enabling bad people to do horrible things."

The exact same thing is true of the US Government: "Bad people are doing bad things behind closed doors. By legalizing privacy in homes (and elsewhere) the United States is enabling bad people to do horrible things."

It is absolutely true that society can stop almost all crime if we would give up our collective rights to privacy.

I don't think we would solve crime if we give up privacy. Who's the controller? Everyone can control everyone or is there a subset of people controlling everyone else?

If the latter, they'll be the ones committing crimes at this point. Not everyone, but some of them. Every large enough subset of humans contains people that will commit crimes at some point and I don't want them to have full power and accessibility on my entire life without a warrant.