I disagree that no one is talking about it: the solutions are there, it is a question of getting the resources to put it together. Circuit based solutions have some nice properties, but the actual security assumptions are a bit odd, and the reasons people should trust a complex circuit and verification protocol are a bit hard.
I don't however think this is really the big debate. Rather it's about ensuring SD-JWT and related non-private solutions do not get used. To the extent that this work helps show it's possible, and the tradeoffs are desirable, it's good.
On that we all agree.