If a person truly has nothing to hide, and if he/she truly wants to play on the casino, then why not tell them your real name? Why post a fake name? That would probably raise the casino's suspicions, no?
You just answer your question with your own post.
Its useless, Level 1 data are connected with Level 2 verification. Those data are fully 100% correct or real after we being verified with our ID on level 2. If they want a background check from the player, at least just do instantly to level 2 before being allowed to access, depositing or playing in the casino. It also gives players a choice: want to stay or move to other casinos with fewer rules.
If you ask me, there are some options to play casino without needing to be verified first. We will choose those casinos first, but also we are ready being verified at the time casino ask us to KYC.