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This just demonstrates you cannot be a privacy friendly company if you also collect personally identifiable information.
If you can't create an account with a VPN, or create an account of a tor. If you can't pay with crypto or with cash. If you must sign up a recovery email address or phone number. You're not really a privacy company.
On one hand, perhaps so, but on the other, let's not equate "privacy" with "ability to do illegal stuff with no consequences". You can have privacy in your own house, but if you cook meth or make bombs in it, the police can and will bust your door and get you. Doing illegal stuff requires way more care than just "privacy" and Proton might not be the best option for that...
You need privacy to organize democracy movements around the world.