Since the majority of users appear to have welcomed the requirement for required KYC, I believe the focus should now be on enhancing exchange security.
With the high number of users who have registered on centralized exchanges and custodial services, you are right if you say majority of BTC users have undergone kyc, if they agree with it or welcome it? I do not know about that, but i know most BTC users choose centralized services over decentralized solutions like p2p exchanges, because they think it is more 'convenient'.
It goes without saying that you should not store your BTC's in a centralized exchange, they bite the dust too often and they use your money to make more money for themselves through fractional reserve scam. If you use p2p exchanges and self custodial wallets, you don't have to worry about what happens to centralized exchanges.