The importance of it comes down to how much the user believes in financial sovereignty. For most people, it is all about making some profit in which case KYC is not as big deal (which is why CEX is still popular!) but for anybody who seeks financial sovereignty, any form of surveillance (that includes KYC) is in complete contradiction.
Only a few number of people buy Bitcoin because of the privacy it offers. Most people are concerned with making money from investing in Bitcoin, so they are comfortable using centralized platforms. Maybe we might start cherishing the decentralized nature of Bitcoin when the government freezes our assets or closely monitors our financial transactions. People have been traced and arrested in my country because they gave out their personal information to centralized exchanges. The highest benefit of owning Bitcoin is not profit but privacy.