There is no privacy in cryptocurrencies - just read news. We just believe in it, and it is true while you have small sums of money. But if you have big money - your privacy ends very fast. The main advantage of cryptocurrencies - fast and partly anonymous transfers and exchanges. So i don`t think that the KYC is a problem, you share you private information every day, just don`t call it KYC.
There's no privacy if you don't use it properly. Read the news? Bro if you found out about wallets and whatnot in the news, then they clearly made a mistake already. What, do you think anonymous wallets would still be called anonymous if they were featured in the news? They aren't seen because they've done well in remaining unseen.
You can believe that you are great professional and no one can catch you until someone do it. On the other side there are professionals too. Yes, anonymous wallets are so anonymous that no one knows about them except creator? Nice wallets that you can have, but cannot use.
We are living in the world that is full of information and the catcher can just wait a mistake. And they can wait. Don`t think that you is the cleverest, it is the first mistake.
That is the thing, we still have some level of privacy but as you stated the problem is that since all transactions are public then you only need to make a single mistake and suddenly you do not have the anonymity that you thought, this has happened many times in the past and that is how some people that thought themselves untouchable eventually met their fall, however assuming that you are not doing anything bad then the chances those technologies will be applied specifically against you are low, so some level of anonymity can still be maintained.