engaging in money laundering? who knows

that's the point: even if you're not doing anything shady you don't really know what sort of long term risk you're taking on if you're using something that looks to governments as if it's tailor made for money laundering

I guess I shouldn't use a VPN, because that might look like I have something to hide. Using cash? No way! If I use cash I might look like a criminal. Leave my cell phone at home? No way, I wouldn't want to be suspicious, would I? I need the government to surveil me every second of every day, because if they don't, maybe I'm a criminal.

At what point do you say enough is enough, and embrace the idea that you should minimize your digital footprint whenever possible?

all of your examples also have some level of risk, which is going to be essentially negligible

a technology specifically designed to allow untracable electronic monetary transactions is going to be many orders of magnitude riskier to use

Actually, use it to reduce risk. If you have no visible wealth you are largely immune to extortion, kidnapping, fraud, and robbery.