Like you said KYD lets us know that there is a real team working on the project and if something does go wrong then if the community want to take action then KYD can provide the details of that particular person/s of the project that scammed.
Yes, what KYD team and their verfiications bring is a additional tool to have more transparent details of developers and if something goes wrong, investors might do a contact with local authority for help, if they want.
That's all KYD provides, and the team are not responsible for the quality of projects they accept to verify.
Now not all scam as some projects just fail which doesn't mean they scammed. In my opinion a scam project is a pre-sale MN project that sells masternodes and then never lists on exchanges and runs off with the money, now this is when KYD could really come into play.
Even, bitcoin, ethereum, dash, monero, all have fallen around 80% or even higher from all time highs, but it is obviously that no one can call them as scam projects.
Price falls are not the only reason to call projects as scam ones.