1. This is a form for the Bitpays & Coinbases of the world to fill out, not citizens.
  2. Unhosted wallet to them means when they provide a non-custodial wallet, such as the coinbase wallet app... This has nothing to do with your trezor because Coinbase can't know you have one.
  3. It will have a chilling effect, however, in what these companies do offer after they figure out all the pain involved with filling out these forms per customer.