At the cost of blocking legitimate users who don’t want to be spammed, don’t want to be correlated after a data breach, etc.
I have been willing to do KYC for services (usually financial) without giving out my main email. Services that put up too many barriers to this don’t get my business. I concede that there aren’t that many users like me, compared to the general public, but I’m a legitimate user.
Luckily I'm not obligated to serve legitimate users who's behavior is similar to that of fraudsters. That would make my job very difficult!
As I said above, and you concede, users like this are too small a minority to be worth worrying about.
There must be at least two of us!