Agreed, but I think this is where we differ. The trade is owning more bitcoin vs. "Seems like there are 5 data breaches a day, these exchanges are high-value targets, and I do not have the time or money to be able to afford the risk of a data breach with my SSN, ID and likeness of my face"

I don't think the tradeoff is close. You could have no or small amount of bitcoin and have less risk of the quoted above, or you could have more bitcoin and slightly more risk of the quoted above. Both seem very risky KYC situations, but one situation you have more bitcoin which seems to de-risk substantially most aspects of life. IMO