Just because someone got attacked during trade doesn't mean that buying/selling bitcoin in person is bad. Problem is that people are not using common sense and are not careful enough when doing that, which sometimes end uo them getting robbed. Using that logic many things you do in real life shouldn't be done just because someone somwehere got robbed/attacked.
Do you not think that doing physical P2P trading might been abused by scammers? Example of what I am talking about is to physically be attached, but not only that.
Unfortunately, every form of P2P transactions opens the door to potential abuse by scammers. Thats just the way it is when people exchange goods in person. It is not only about the threat of violence or theft but all kinds of fraud too. However, using secure online platforms helps but its not foolproof. Hacks, rug pulls, data leaks - those things can still happen and and there is always some risk of plain old scams. Good news is, there seem to be way less reports of people getting attacked in person versus getting scammed online.
The other reason which was the reason I referred to as KYC is that some bad actors can see this as an opportunity to know who is trading on an exchange. They will not attack during the trading but give attackers information about the bitcoin trader so that they can attack him at his house. I can not trade bitcoin physically.
Online KYC verification always involve some risk. Just look at what happened with Ledger's database getting hacked and customers personal info leaked, and related attacks. So, nothing new or special. Actually its a lot easier to use fake data and burner phones for P2P trades compared to centralized exchanges.