The only way to fix the ToS issue you raised is through regulation protecting it.
Unfortunately we're going the other direction, with efforts like verified ID gaining traction in some parts of the world.
It's ironic because in most cases anonymity (or allowing an alternate identity that has its own built-up reputation) would offer real protection, while the verification systems are arguably security theatre.
I don't care what technical genius is built into your architecture, as soon as you force a user to plug their ID information into it, they've forked over control along with any agency to protect their own safety.
The only way to fix the ToS issue you raised is through regulation protecting it.
Unfortunately we're going the other direction, with efforts like verified ID gaining traction in some parts of the world.
It's ironic because in most cases anonymity (or allowing an alternate identity that has its own built-up reputation) would offer real protection, while the verification systems are arguably security theatre.
I don't care what technical genius is built into your architecture, as soon as you force a user to plug their ID information into it, they've forked over control along with any agency to protect their own safety.