I think boycotting them is taking it too far.
Goes way too far. People are too easily triggered by these events, which is a bit pathetic to be honest. If you don't like a service, don't use it. It's not that Shapeshift did any harm to their users. It's forced upon them by the authorities.
But like I said on my previous reply, ShapeShift is a business; and as a business, they should make sure that their service keeps up and running.
As long as they can offer the convenience they are known for, they will eventually continue to grow after a short term dip due to their KYC requirements. All it requires is another crypto boom to attract a new group of users.
People easily hand over their private information to ICOs and whatnot, so I'm sure they won't make a problem out of Shapeshift's KYC requirements as genuine service. They'll recover for sure, no doubt about that.