I liken this process to a losing game played by authoritarians all over, normalizing a game of "subvert the man" I see the battle fought over sex, drugs, piracy, probably many other topics. Take drugs (for example) "drugs are bad m'kay" but then there are mind expanding opportunities tucked in there as well, yes most have some risk or delayed consequences associated but the lack of nuance (hard to impart on young minds granted) leads to the drugs are bad talk from someone authoritive, and those that dabble bring amazing tales that refute the earlier information that drugs are bad, and survivorship bias and a "new way the authorities were wrong" takes over and undermines the good intentions of those that see the negative impact drugs can bring. Chances are kids seeking a less locked down experience may dabble in much darker places on the net and it may be that this new "KYC" push actually widens that devide instead of protecting the children (which is merely the story used to push for this enhanced customer identity goldmine.)