yeah they did some damage implementing those kyc rules. some of the buyers did never return and hurdles to buy monero are bigger for newcomers now
I'm not sure that I agree that there are any bigger hurdles for newcomers. Shapeshift seems to work just fine and is roughly the same process as when we were using Polo:
Buy BTC on Coinbase or Circle (or other).
Transfer BTC to Polo or Shapeshift.
Get XMR.
In fact, I'd say that the rise of Shapeshift has made things easier. Now, instead of letting too much of my stash reside on Polo (a safety concern), it goes to my XMR wallet directly.
The whole Polo debacle was more of an "ugh, really?! Ok, fine." And it probably increased the security of our community by having us move XMR to our wallets. Sure, it was a PITA, but I don't think any medium to long term damage was done.
Polo has done XMR a great favor. The short term pain is worth the long term gain.
Their KYC boot-licking has two beneficial effects. First, it creates motivation/incentive for volume to move to other exchanges.
I've been waiting for someone to buy KoziTwo's nifty cryptonote.exchange.to project and stick it on an i2p/onion site....
Second, Polo is now ready to start the scaling process of accepting fiat not just from piddly bank transfers, but real (7+ figures) money from accredited investors as well.