I dont think anything puts people off more than kyc I personally prefer when ICOs allow for a low cap trader to do only minor kyc I mean why should people trading 100$ have to do extensive kyc but each group has its own requirements
You are right, i think it will be best if they create preferences for users, like those with minimum amount to invest can bring little or no proof of identification, in my opinion, KYC should be for those with huge amount to invest because when it comes to scrutiny from the authorities, huge investments is what they aim at, so i see no much reason why such is needed