The issue I'm pointing out relates to the basic needs of any new user, namely buying BTC, or selling it for fiat, and converting to another currency. Hence, a basic exchanging activity.

At this point I'm reluctant to point friends towards BTC, because MtGox, as the defacto standard BTC exchanger, is basically unsafe to use as advertised. If instead they admitted that there is no "level 0" account in practice, and the requirement for AML verification would be stated clearly, I'd have no problem recommeding them.