Agree with you. Bittrex has been bringing changes with so many things on it's exchange. The mandatory KYC is the main reason why many people have shifted to binance and I would agree that binance is still far better than bittrex. Binance has it's own 'Binance Launchpad' which is a token development platform for the IEOs and it's going pretty decently. It has been accepted well by the investors and traders. It's recent IEO Bittorrent was very well received by the traders and investors.Bittrex on the other hand screwed up it's first ever IEO for some reason ( I still don't know why). May be once bittrex does a successful IEO then people may gain trust over it again.
you are absolutely right on everything you said about where bittrex got it wrong except where you said bittrex made kyc mandatory for people likewise on binance if you want to participate in binance IEO launchpad you must pass their kyc.
The mandatory ID verification on the Binance Launchapad is still better because binance is by far the most secure exchange in today's date. Besides that it depends on you whether you want to take part in it's IEO or not.
One thing I would like to point out here is that if you would take part in ICOs and if it was mandatory to give your KYC details then you would had to give your personal details to every ICO you would take part in whereas if you do the ID verification process on binance launchpad once then you would be eligible to take part in every IEO that launches on it's launchpad without any hassle of KYC.