Satoshi rightfully feared the same outcome as those behind libertycoin. The main guy was only just released from prison for trying to create a currency, a concept that seems comically quaint in 2021.
It's a bit surprising they were able to get the "too similar to existing coins" argument to stick given that I doubt the average person would confuse the coins with a quarter, and much more similar designs are pretty common on bullion.[1]
it's because they know at this point there are too many people who have adopted it. it is easier to screw over 1 person, but hundreds of millions of people, you may have some civil disobedience. but that's just a theory, change of administration probably plays a bigger role than that. old heads back then not understanding the idea behind crypto and feeling threatened because of it etc
[1]https://www.govmint.com/2-oz-silver-walking-liberty-tribute-...