I agree with you that, kyc should be meant for the big investors those that have the larger percentage shares or token of a particular project and leaving the small of few shares hodler without kyc.
However, a system or regulation must be fair, because there is no comparison between large or small investors, they are all investors. If treated like that, it will only cause cause and endless problems. They like it or not, it must be treated like that.
I support your view, kyc is meant to be for all, that will help in regulating the the whole space.
I low investors are left out, this will create room for people cheating the system by creating multiple accounts to invest.