I guess it is a government requirement to oblige big exchanges to have KYC. I don't think KYC is a bad thing, unless you plan to use your money on evil things. Also, in order to achieve mass adoption, regulation is a must, and KYC is one of the stages to achieve it.
I completely agree to this. KYC is good for bitcoins as it ensures that the fraudsters, criminals or terrorists stay away from these. Even after there are KYC requirement for bitcoin, I see a lot of people cheating exchanges by registering accounts with fake documents. In my country, even opening a fake bank account is not that hard and you can easily get it done with the help of bank employees. I hope that government looks after these cases with extra investigation. I do not want my countries economy to suffer because of all black money being spent in bitcoins.