Of course we can all agree that KYC is pain in the arse. Unfortunately this law is unavoidable if they want do business in the US/EU and most other parts of the world. I wouldn’t call this spying on for the government, it’s rather a cost of doing business (unfortunately).
Of course they make money of you, how else would they have a business? As far as I know the spread that they take is tiny when compared to the rest of their competitors.
If you use Bitcoin right. You can withdraw your BTC in privacy preserving ways, getting around the KYC shit, using coinjoin transactions etc