Personally, I do not mind performing KYC on reputable casinos, especially those with a good reputation, a partnership with this forum, or even a partnership with a well-known sports club. However, I probably wouldn't perform KYC on a casino site that does not have a partnership with anyone. We know that such casinos exist, and I avoid them. I think this is also important for people to be aware of, as there is a clear potential for misuse of data entered from shady casino sites.
Yes mate KYC is the biggest divider in bitcoin gambling. If I am using bitcoin, I expect privacy and skip invasive verification, that is the whole point. A no-KYC policy for bitcoin users up to a solid threshold makes sense, it respects user privacy. If KYC is required, it must be fast and minimal. No delays, no nonsense. Clear rules, instant withdrawals, that is what builds trust and keeps users coming back. Anything else, people will just move on.