excellent points!

KYC

I'm not an expert in decentralized KYC, so have only knowledge of a few projects which work on this topic. My thoughts about "Ideal monetary system" are based on the assumption that decentralized KYC would be somehow solved in the future. At least on a required level of tamper-proofness because decentralization is never black/white - there's always a whole spectrum, like Bitcoin/Ethereum consensus.

“It is not a matter of what is true that counts, but a matter of what is perceived to be true.” - true here, but I think this is fundamental problem of democracy. Good and universal education might a solution here.

About inflation vs printing - also very good point. the major change is who gets seigniorage/benefits and how. Instead of government, all new-minted currency goes to a citizen. A blockchain is merely a potential tool that "in theory" might help to build such a system. Inability to overprint money without citizen consensus might be a beneficial bonus, but developed countries mostly already solved that by strong democratic institutions.