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There are such markets in the open, as trading gold and crypto is mostly legal, so where's the demand for a dark market for those?

The point, I think,would be an on/off ramp that ignores KYC and isn't receptive to court orders to reveal customer information.

Aren't localbitcoins.com and similar markets that?

Do you think they'd ignore a court order?

They don't handle the trades themselves. You use them to find a person and trade directly with them.

Localbitcoins has required mandatory KYC for quite a while, like postpaid phone number, no prepaid, no throwaway just to be able to send a message.

You're effectively locked out from talking to others or reading listings until you KYC.

IIRC LocalMonero/AgoraDesk doesn't require KYC.