I agree that not many people are using Bitcoin ATMs because of several important reasons. Main problems are privacy issues and high fees which have made people not want to use them. Instead of this they prefer to use online trading platforms. Privacy means not only keeping transactions safe and personal information protected but also being worried about laws that could let authorities watch what people are doing with their money.
I would like to say an opposite fact than your post, most people don't care about privacy and use online trading platforms don't secure their privacy. Most centralized platforms nowadays have mandatory KYC before you can full access their services and use account with full features.
People dislike Bitcoin ATMs because of anonymity and expensive fee. When they come to a Bitcoin ATM and use it, their anonymity gone and they can face with physical attacks after that. Privacy and anonymity are very different and your post sounds like you misunderstood privacy and anonymity.
People don't care about privacy but perhaps they care about anonymity that is related to their life safety.