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KYC is of course a spectrum just like privacy. When I say Never KYC I mean don't answer questions or supply information that is unnecessary for the provision of the goods or services. Obviously this doesn't mean you should do illegal stuff. It just means that whomever becomes interested in your history needs to follow legal channels hopefully requiring probable cause in order to track you down.
Privacy is important for defense against tyranny and KYC is a specific denial of privacy and enabler of tyranny.