that's grounds for cancellation of a domain sooooo.....

I do. The terms of the domain registration say that providing incorrect information can result in revocation of the registration. Not really worth the risk, IMO, for any domain I actually care about.

Not just that, but also if the registrar turns out to be fraudulent or someone convinces your registrar to transfer the domain (scam the support team), or they get your account password and transfer the domain that way (data leak elsewhere, password reset with a sim swap, you name it)... there are so many ways you can have "technical difficulties", but in the end: you're the one with an ID card that has your name on it. You can take the TLD to court and have them give you back the domain that was legally purchased in your name

Except if it's not in your name

So yep, as you say: make this decision (fake or real information) knowing the risks involved in not legally owning it