One of the main reasons why we (at least I) despise banks, governments and corporations, namely their appalling bureaucracy and their slowness and horrible lack of efficiency, should be used as a protection against them. Fill out their forms and reply to their questionnaires in a way that satisfies them, and you'll probably be perfectly fine....
Oh of course. It's not that big a deal, bitcoins go through a special account at the bank that is KYCed and all taxes are paid and so forth. It's just annoying to see it going into every aspect of one's life. Plus I remember paypal hacks and know the damage having too much information out there can cause.
So if I don't need PP I don't need to give them even more data to lose. Plus there is that "if you don't control your keys, it's not bitcoin" voice that whispers in the back of my head.