If things stay the way they are right now, I wouldn't be surprised if Bitcoin becomes a purely KYC endeavor. Forever trapped as a dollarized asset to be traded and speculated on.

Even if you have non-KYC sats, every white market shop you can spend Bitcoin on will probably ask for KYC if you opt to buy stuff in Bitcoin. Perhaps, they'll just outright ban your non-KYC UTXOs because it came from an unregulated source.

The future looks bleak, if I'm being honest. I personally think that the only way to reverse this is if there's a massive culture shift on Bitcoin holders from "number go up" to actually thinking about Bitcoin as an alternative form of money.