they have changed their terms multiple times recently. many of us did not sign up to these terms. they dropped peoples' withdrawal limits to 0 or 0.025 BTC/day unless they start the verification process. many people have basic verification, which was a healthy medium between full anonymity and giving your passport and SSN to a shady exchange. nobody knows who the owners of bittrex are; they are not public personas like with bitstamp or even bitfinex.
Terms have been very lenient for the 'older' accounts, but the fact is still that you make use of a centralized exchange platform that at any time can change the rules of its 'game'. Does it suck that they can just change things at any time, sure it does, but that's something people shouldn't be surprised about.
how do you know they are a "legitimate business that abides by all rules/laws?" for all i know, they might be taken down by the FBI tomorrow just like btc-e was. they've been operating as a money transmitter -- and headquartered in the USA no less -- without any legal registration as an MSB in any of the 50 states. that alone is enough to have them immediately shut down by regulators.
Perhaps I should have used different wording -> They try to act like they are abiding by the rules/laws.
why the hell would anyone want to give their documents to such a company? how could they be trusted to store the data properly?
That basically goes up for every exchange. Nothing protects precious user information from being abused in whatever shape or form, looked into by entities that should be able to do so, etc. It's just people fully verifying initially, where it then is being pushed deep under a heavy load of sand, where after that people don't care anymore as long as it isn't directly bothering them.
the fact that there is a large, steady stream of people complaining of having their accounts disabled recently and forced to provide ID documents suggests this is systematic, and not the fault of the users whose accounts are disabled. this is shady as fuck on the part of bittrex.
That I can definitely agree with, but I was mainly referring to people signing up in recent days. If you sign up today, without looking into the terms at all, you deposit whatever coin, and then you find out that your funds are stuck, honestly, who's fault is it then? And that's exactly what I was referring to with my initial post. I am not talking about others who've been long term members of Bittrex and suddenly are forced to provide ID and whatnot.