You're right except the KYC is unavoidable. No current service (that I know of) allows you to withdraw into an Indian account, in any circumstance, if the account has not been KYC validated. And in India, that includes linking one's PAN card which is the chief unique financial identifier of a person here.

It's important to me because I like to keep cashing in small profits every now and then. Of course- I maintain two separate wallets and transaction chains. An anonymous wallet stores most of my crypto, unlinked to India in any way.

And it could be important to Indian users for other reasons. Most first-time crypto buyers in India will buy crypto for profits, or at least the expectation of profits. To test this, they would want to make an intial withdrawal back into fiat to assure themselves that they can withdraw their money whenever they want to, and that it will not get locked into staying crypto forever. To do it, once again, they will have to undergo the KYC.

Not saying this is a problem, not unless you want to stay completely anonymous. But it is a hassle neverthless, one that I took time figuring out.