It would be crazy to create a flag against this user. He is not the scammer. Otherwise, we could create a scam accusation against theymos and create a flag, because a lot of members got scammed here. lol
I agree with you but if theymos imposes restrictions on identity (KYC & AML) and then fails to reduce scams, he will be responsible.
If that platform (paxful) can not reduce scam, there is no need to verify your ID.
In general, it may have been an isolated case, but if the approach continues and many scams occur, report that platform legally.
The "need" may be subjective. They could be required by law to have a KYC process in place just to get operational permit / licenses.
Paxful is full of scammers and it has been that way for a long time. I remember once I was trying to find an alternative solution against using Localbitcoins and I ended up on Paxful. Luckily I didn't do a single trade there, it was so fishy. Looking back, I was a newbie back then, it would have been easier for me to get ripped off.