How many transactions have not gone ahead because of censorship tho? The fact of the matter is that every transaction is traceable and when coin mixing is soon to be banned/ illegal it makes bitcoin not as fungible as cash or gold. All Those hundred trillion US dollar worth of transactions may not be censored but they are being traced, and many will be censored at the end of the line

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But not everything thats added to the block can be spent. Eg tainted coins or deannonymised coins (that is any bitcoin) on a watch list. Which means Bitcoin is no longer fungible.
They are censored in the sense that when those transaction move you can be seen moving them and the state/police can act accordingly. They can't spend them, but they can stop you from spending them without their knowledege.