AML tools for chain analysis do not work on Monero. On BTC it is already a problem

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Is it a problem for people who do P2P?

The moment you use fiat ramps your privacy is gone. No matter if Monero or Bitcoin.

True, but once a Monero user withdraws they lose track of it with nothing further required.

Bitcoin requires extra manual steps that require a fair bit of knowledge, money, time, and tedium. This is why vast majority of Bitcoin users don't coinjoin.

It's not just that though. Even p2p, you still don't want anyone you transact with to know your balances and tx history. Even if they are people you know.