Ok yea I get that point and its common to a ton of websites, I dont really disagree with you and its something everyone needs to consider when they leave the blockchain to deposit with a website.  
 This is not just crypto though, its kinda similar to a deposit with a bank, there is a real systemic risk where that deposit makes the customer a creditor.   Heres a good video I watched on this type of larger problem ignored by most, it might at some point count when all banks are affected by the same factors like 2008 demonstrated, in places like Cyprus it wasnt theoretical:
https://youtu.be/EC0G7pY4wRE?t=346

   I noticed every comment you make is on this website and this thread in criticism but this company is no bad actor in crypto sector so I'm not sure why your so dedicated to the cause.     Its not a recent startup, its donkeys years old its not really a risk but fair enough its a factor of risk to consider.   I have been exit scammed a few times in crypto, never large amount not that I have amounts large to lose but I never expect longevity as yea it happens.    I have also had that in my normal gambling and FIAT setup, they had my ID but wanted more ID and so on.    KYC can be used to scam and theres all sorts of tricks used so I get the general idea that maintaining ownership is a positive feature for any setup

I gave you a merit anyway but Im not agreeing especially theres anything negative to criticise about Freebitco but its a point to remember in general