That's one use for btc that I hadn't thought of. Neat! However one still has to be careful to somehow fund a cold wallet without linking your ID via the transactions.

I.e. to use an exchange like binance or coinbase, I have to link my US ID. So if a government actor were after me, they could easily find out about my cold wallet by viewing my transactions, no?. I guess I could -not- divulge the seed words, but that's assuming I'm not being accosted/tortured either.

I would have to use a btc atm (none near me...), swap a visa gift card for btc (and take a ~10-20% haircut...) or find someone to trade cash for coins, which is its own issue.

Government/warlord-avoiding money transfer like this is the core use case for Bitcoin outside of speculating on its future value. It's not for casual shopping transactions.

localbitcoins. It's like craigslist: you find people you meet up with, give them cash, they transfer you the BTC (through escrow). No KYC, no shenanigans, you just need to be willing to pay their few-percentage-point fees.

Correction: Localbitcoins does require KYC.

You're right, they do, once you're over 1000€ per year: https://localbitcoins.com/blog/id-verification-update/

Incorrect, localbitcoins only requires KYC for their escrow feature. Most people do not use the useless escrow feature.

I've read similar stories of people escaping Venezuela with their wealth.

To me that's the main use for bitcoin. Moving money if you're worried about it getting ripped off in transit, not as a permanent store of wealth.