"They" want you ("us") to be scared, and seems like it is working.
Yeah they do, but are we really scared? We are only "out of sight" not "out of mind"

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I am not against each of us attempting to protect ourselves, yet at the same time, it seems to me that you are glossing over my point that relates to using bitcoin and even interacting with people who use bitcoin, which are good things. Bitcoin meet ups and other ways of interacting with our communities in bitcoin ways can also be good for each of us and good for bitcoin too.
No one is forcing you.
You do what you like, including if you want to stay quite about your bitcoin and ONLY perfrom KYC transactions through approved channels. That's your choice.
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I understand the point that you are trying to prove. Our lives are important and nothing is wrong with protecting it. But it is not advisable to let you emotion to control you, if not, you will end up hiding yourself at home without doing anything that is going to be beneficial/profitable to you, to stabilise your life and that of your family. In this life, NO PAIN, NO GAIN. "if you want a goal, you must shoot your shot" Bitcoin is a great cryptocurrency and fear can discourage someone from reaching their destination. Some successful bitcoiners that you are seeing today also faces some challenges but they never give up easily.