And all in all, aren't such things contrary to the idea of cryptocurrency on the whole if you have as much anonymity when working with it as you do with fiat?
Bitcoin isn't anonymous, and it wasn't designed to be. The level of privacy you can achieve with it depends entirely on how you use it. All your transactions are recorded on a publicly viewable ledger and can be linked to each other unless you take steps to break this link (such as mixers or CoinJoin). Most people broadcast their transactions from their own IP address or use custodial wallets from their own IP address. Lots of people have completed KYC procedures at various exchanges or third party services. Lots of people reuse addresses. The "standard" user who completes KYC at some big exchange to buy their bitcoin, and either spends directly from the exchange or withdraws directly to their own wallet, has less anonymity than if they were using fiat. If you want to use bitcoin truly anonymously, then you have to take active steps to do so. Have a look here for more information:
https://en.bitcoin.it/wiki/PrivacyAs stated above, bitcoin ATMs are not anonymous by any means. Even the ones which don't ask for KYC documents prior to use will still have cameras in them or near them recording your activity. A much more private way to buy and sell bitcoin for fiat is to trade peer to peer on a platform such as BISQ. For maximum privacy you can use untraceable fiat methods, such as cash in person or an anonymous money order.