Bitusd is does not solve the problem anymore than the dollar does. Government can track/freeze funds at Coinbase level. Sure, you could be sneaky about, but you couldn't be anymore sneaky about it then you can with the dollar.
My statement will be true until the dollar is replaced. Even then, it may hold true. Depends on who adopts bitusd. If you could persuade a whole community to adopt it then it would be a solution.
Has anybody ever tried to coordinate a large group of people to move to an area and use only crypto? Business people, teachers, tradesmen, ect.., it would only take one community to change the world.