I think human right to privacy shouldn't be violated in anyway unless the human is involved in serious crimes or some suspicious activities. And even when ID becomes necessary, it should be handled with care to prevent it from going into the wrong hands.
By the way, the kyc issues could make thriving online economically alot difficult for people in certain remote places who probably prefer to have little to zero contact with modern world. This are the kind of people crypto would be more suitable for, unfortunately they will be denied access to lots of cryptocurrency exchanges in existence today.
Not like I'm a fan of kyc but without the implementation of anti money laundering scheme, the crimes thag will be happening around us will be very unlimited but if you look at it from different angles, you will see the importance of KYC. However, it's beat Bitcoin relevance, why will I want to buy Bitcoin to use for privacy when everything I literally do are recorded and share with other people, there is no any privacy left doing such when I can use fiat directly.
As for the kyc, i don't think any government will withdraw it, it has been around for years in the traditional finance, I'm not sure if they are going to do that now. The government want you to be recorded before you use one or two things they control. If you don't want to be control, then avoid everything that has to do with kyc but just know that life can't be without it because I don't know how you are going to.register for your health service.