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 A instantswap told me their AML tool AMLBot marked the coins as having been used in gambling, 4-5 transactions ago. Too high of a risk for them. 
 Whoa okay. Yeah that's a real concern.

I'm imagining a future for myself where most bitcoin is exchanged peer to peer rather than with institutions, but having the option is important.  
 Ii am seeing the development into a future where non kyc btc transactions get harder and harder through regulation and aml/onchain analysis. 

You have to interact with businesses, they will comply with aml and kyc. 

KYC data will leak, others will know how much you have etc. -  the chances of BTC turning into a nightmare are pretty high imo. 
 I see what you see. We will need a lot of other freedom tech infrastructure to avoid this future whether it be Bitcoin or any other coin you may support.  
 Sure. First we need awareness in the community about the problematic development of BTC.