There was a movement at the time, coalesced by this manifesto, of the geekiest of the nerds, the very few engineers who really cared about encryption, privacy and libertarianism. (OG Libertarians)
For awhile, it was like a window into the world of a William Gibson novel.
Unfortunately, technology marches slowly, and by the time bitcoin was released, the movement was a lot less strong than it was.
Now bitcoin crystalized a second cypherpunk movement around it... but it's success over the past 5 years has attracted a whole lot of momo, traders, players, "investors" and generally non-technical types who can't tell the difference between ripple and bitcoin, except "Ripple has all the banks excited, I'm gonna make bank!"
At some point, though, those eople will be less of an influence as we, as a wider cypherpunk community, recognize, ironically, that identity and the trust that a real identity can accrue, is what is key.
Adam Beck, Luke-Jr, Samson Mow, Matt Blue, and others I don't know as well are accruing the riches of correct predictions, and a half decade of actions with integrity, while the wannabe kings make their plans and push agreements, they will be cast aside as their true intentions become more widely recognized, and their proposals fail in the marketplace (you can't just rip code out of core and call it "bitcoin" and expect it to survive-- the gyrations of BCH's hash rate are a good example of this.)
This is defeatist. There are ways. Imperfect, but they exist.
There are legal remedies like HIPAA. It seems that we don't actually want the health care system to share everything it knows about us.
Also, Snapchat got where it is by realizing its users want disappearing messages and doing their best to give it to them.
But seriously, I don't think that's necessarily an accurate description of everyone who's against encryption. Some of them just have a poor understanding of the subject and are told total bullshit by other people about it. Often times people who are allegedly "experts".
Ignorance to these kinds of things keeps people who would otherwise totally support in the dark, and thus, afraid of it.