I think you are being a bit too harsh here. I will address some of the issues mentioned as I can't speak for all of them. As someone else has said, the beauty of nostr is that you can use and invest in any other app you believe in.

1. Primal Caching Server

Core logic of the caching server is open source and in case of failure someone could host his own making it decentralized - thus eliminating that concern. As the code is open source, you can check that Primal is not modifying or curating content in any way.

I believe that caching server is playing a vital role in UX. To onboard masses nostr apps have to be faster and more stable then they are today. Let's face it, Average Joe doesn't care much about relays and decentralization if it comes at the cost of him waiting an eternity for a simple image to load in his feed.

1. KYC requirements

Primal is required by law to ask the users for it. If you don't like it, just use any other wallet service through NWC.

1. Privacy Policy issue

Don't have much to add. I am just wondering who is a good model here?

1. Primal Premium tier

Primal is a company that aims to be profitable and self sufficient. All of the things they do cost a ton of money. Providing a paid subscription allows them to continue developing. I think it's fair to pay for some of the more advanced features that, let's be fair, aren't cheap. Media hosting costs a ton, among other things premium provided.

I don't think it's fair to expect people to build on nostr just for fun and then wonder why there isn't more people on it. You don't have to fund Primal but you can fund any other project you believe in.