I think KYC is not that bad. The main purpose of it is for added security and protection not only to your account but specially to the exchange itself. So they could prevent from being used, intentionally or unintentionally, by criminal elements or money laundering activities.
Agreed, In fact, I don't see any bad things about giving information in any exchange. Also, it is normal rules that in every exchange they implement this to avoid money laundering and other illegal activities in online transactions. Aside from that every exchangers are registered also to their country which is they really need to required their clients users to apply KYC. If you are making a big transactions to their platform depending on the amount of btc you are going to withdraw it. this was just my opinion only, I don't know if to others this reasons is correct for them.
I also think it's reasonable to provide information to the exchange if it's done for the sake of account security. Both user and exchange should be transparent. For example,
CEX provides a high level of security to its users. Though the verification procedure really exhausts, it is totally worth it.