Unlike Binance, Bittrex is not forced by any regulatory pressure for it to behave the way it is right now, so they are basically just screwing customers over and trying to play the long game for people to just give up and hope that they end up with the users fund.
That is not correct. Bittrex has always had the intention to offer people actual fiat trading, but for that to happen they had to clean up their exchange and become compliant enough to do so.
Abiding by government based regulations isn't enough because they also have to please their very demanding banking partner at the same time, so you can imagine how difficult it is not to do what Bittrex did.
Could they be more transparent about the whole situation and handle things differently? Sure, but we shouldn't forget that it was an unregulated exchange not giving a shit for years.
Going from shitcoin exchange to a professional platform requires some serious adjustments. They seem overly concerned to almost paranoid to not mess up somewhere in legal terms, but it unfortunately goes at cost of their users.