> I thought this is what we were trying to avoid in the first place.

Well, yes. Doing anything with USD (or most other currencies) is a complete nightmare, especially including converting them to other currencies.

The goal is that eventually you might want to accept some or all of your pay as bitcoin, which would've been paid to your employer as bitcoin, and thus the loop is closed and nobody has to implement any KYC procedures. Converting from <currency> to bitcoin to pay somebody for them to turn it back into <currency> suffers from all the legal issues that affect <currency> - which should be obvious.

Also obvious is that this will pretty much never happen on any large scale, rendering bitcoin near-worthless for most people.