I would argue convenience and costs are definitely reasons. Don't pretend that #NoKYC platforms are on par with the UX and price/spreads available on #KYC platforms.
Discussion
I would agree to an extent but this is throwing the baby with the bathwater. When u say convenience, do you mean waiting 4 hours to purchase less than $1000 of Bitcoin and then getting cancelled by your counterparty on your first attempt with the site?
The ux on kyc site is a lot better which is why they have more users. Let's not decieve ourselves. Binance p2p is is more intuitive than bisq.
I'm not to worried about the price of non kyc Bitcoin. The experience is what matters and determines if one would use them .
No one would willingly subject themselves to a worse experience. It doesn't have to be at the competition. It just needs to be good and and effect policies around counterparties.