Regarding handing out your KYC documents upfront at the time of registration, IMO, it is a very good idea, but there is no guarantee that pro-KYC casinos will not ask for additional documents. So all in all, if you are playing at reputable casinos and not cheating, you will enjoy a good experience.
I don’t like this part because you will not have a chance to back down on a casino if you happened to realize late that the casino is bad while you already submitted your KYC.
It’s a typical wrong misconception that casino will not freeze or restrict someone account after they do KYC while still breaking the ToS.
Just like what you mentioned. Casino will not investigate an account without real issue involved.