This is the users perspective and something we would like to see. We like our personal data to stay anonimous and confidential.
But from exchanges perspective who are under big pressure by different laws and regulations this is impossibe if they want to run legitimate business. Otherwise they risk a lot and that is not in their best interest.
The point is that they don't have to be nearly as invasive as they are. I opened a bank account specifically for buying cryptocurrencies and the bank didn't ask for anything like what the exchanges expect. The exchanges request more information than they need. If the old, stuffy banking institution can comply with KYC without asking where I work and what I plan to do with my money then so can the exchanges.