Sorry for the wall of text.
Not precisely, the same wallet (like Moon, ledger, etc. for example) can generate several public addresses from the same private address, and you (as the owner) can automatically access all of them like one same 'account'.
Also, while it's true the blockchain is open, there is no personal data associate with any address. Nobody can know the address bc165ert783eres43etcetc is associate with Name Lastname. You can try track it, right, but is not infallible. If you send x amount from address 1 to address 2 how do you know address 2 is the same owner of adress1, the bakery or a church's bingo?
'Additionally, they can ban the exchanges associated with you the same way Visa/Mastercard does.' <- That is true, but how can they prove you are buying porn, donating to Ukraine, paying a VPN, just saving or sending money to your cousin? You can't just simply shut down an exchange 'just in case'. Also, while not completely safe, there are P2P exchanges (while you have to be careful here like any p2p market, is not shady and stuff).
I don't understand the difference between monero and bitcoin. Can you explain? or link to a place to learn? (and just don't reply google please.)
Also, i think the issue is not about the legality but more like a forced moral. (I may be wrong, so please tell me if i am) The deal looks more like. 'Collective shout' wants to censor adult stuff (opening the door to censoring more things in the future from other parties) -> Mess with Visa/Mastercard -> Visa/Mastercard mess with itch.io, Steam and all of the users.