I agree. Having a license doesn't necessarily mean the casino can't become shady. Because if they want to scam their gamblers, no one can stop them regardless of they're regulated or not. So it's about how they established their casino to prove that they can be trust. Through reviews of the gamblers based on their own experience playing on the site.
Yes, it does not guarantee that a casino will not be shady or won't be committing acts of fraud etc however the point of the license is that the authorities can easily catch those who are responsible compared to if the casino was not licensed they probably would find a hard time finding the ones behind it.
Anyway, regulation is already part of casino and it's inevitable for them to continue operating their business. Hence, it's our choice if we will comply and undergo kyc or refrain ourselves from playing.
Or find another platform that suit ourselves. There are thousands of platforms out there with each other being unique, we can find one that fits our preferences.