Your points really resonates with me but what are you proposing? I mean how are you going to be able to do this.
We need to be able to exchange CASH for crypto without any Government taxation or tracking.
The localbitcoin and peer-to-peer solution looks like a viable one by it lacks structure, feasibility and many other problems attached. I believe the general user care less about KYC. That data is already with the governments and institutions, you are just sharing it one more time. I totally understand your points, but I guess we are not yet ready for that.