If you are using Bitcoin the way the cypherpunks envisioned decentralized money, then Bitcoin fulfills its goal of being decentralized money.
Well yes, but that is missing the point. This bill will not affected me directly since I have never and will never use any KYC platform. But it will absolutely force more service providers down the KYC route, it will massively increase the barriers for new small businesses and service providers to start accepting bitcoin, it will turn many people off of bitcoin altogether, and it will create a two tiered system between "government approved bitcoin" and "free bitcoin". All of this is terrible for bitcoin on the whole.
Bitcoin was clearly created with the assumption that the government will try to do something like that. Bitcoin community got too relaxed, too reliant on the centralized ecosystem. So yes, it will greatly shake the current ecosystem and community, it will be ugly, but ultimately Bitcoin will survive, and hopefully the ecosystem will become more decentralized and resilient to such moves by the government.