Will wallets run by companies ever do CashFusion in the reasonable near term (1 year)?

It seems not.

Seems that only really free software projects will have cojones to provide the degree of financial privacy that users will expect from a cryptocurrency. I suspect this has as a reason the legal risks due to regulations.

That's my working theory, I am looking for counterexamples - CashFusion implementations that are actually in development and making headway.

Mixing on SmartBCH (e.g with Tornado) could be a future option, but users should take into account the relative transaction costs (which are at least one order of magnitude lower on BCH).