If I ever traded on a centralized exchange, any coins I withdrew to a KYC-linked address would be forwarded to a mixer within the same block.
That address is still linked to you. More precisely, to the person who withdrew the coins. And the same person then sent the coins to a mixer.
You could mix your coins even if your address is verified using AOPP standards. I don't see it being anymore privacy-invasive than a centralized exchange who already knows the name of the person who is making a withdrawal.
It is absolutely crazy that the community as a whole is OK with this kind of insane privacy invasion.
I agree. Unfortunately, it will only get worse. If one country has started using this, more countries will do so in the future. The same goes for centralized exchanges. Whether we like it or not, that's where most of the crypto trading is done. The decentralized alternatives are unfortunately still not on par with centralized ones. Most people don't mind sharing their data for a better exchange rate, a bit of cashback or some similar offers and advantages. Since that's the way it is, that will be the direction this ecosystem will move towards.