Thanks for your interest in ERC-8605 — I’m also excited about the recent surge of related work, including this thread (which is quite similar to what you’re doing): zERC20 : Cross-Chain Private ERC-20 Based on ZK Proof-of-Burn
Regarding the UX concerns introduced by wrappers, I think the ZWToken-unaware workflow can significantly improve the situation. Users don’t necessarily need to be aware that a wrapper exists at all.
I still believe that even if new tokens are issued, wrappers remain the only viable path. Asset issuers generally prefer to avoid regulatory exposure (which is essential for the survival of their projects), so privacy inevitably has to be handled by a permissionless wrapper — even if that means we’ll need some additional UX improvements.