I was one of the people who heavily used localbitcoins but after the introduction of KYC... I have even never logged in since then. Even if they extend the deadline to 2 year, I don't i will upload my documents and i believe there are lots of users out there just like me.
They will subsequently lose a lot of traders due to this sort of crap.
Some Binance Local fiat exchange branches also had such stringent rules for KYC upon launching where you would not even be able to trade a single cent minus first uploading your docs but guess what?
They already started including trade limits and withdrawal limits for accounts that have not uploaded any docs. Meaning you can still trade without uploading anything.
So until then, Bitsq and binance will be of great use.
Local bitcoins can die already