This is the kind of mental block that Twitter arguments create. Everyone just locks on to one idea and it’s battle to the end.
Let us reframe this by adding an alternate view. We’ll start with a list of premises that we can accept or reject.
1. SPO can be run as a business (All sides seem fine with that)
However, unlike Charles I see delegation as being a VOTER, not a CUSTOMER. We don’t send our ₳ to SPOs, We don’t even delegate our ₳, we delegate our wallets. Our voting power of our delegated wallet is determined by amount of ₳ we have at snap-shot time. Our votes help ELECT SPOs for block production. Just like elected officials SPOs keep our system safe and running. They get compensated for doing that job from the system that we all pay into.
So, if we extend that analogy, then what would it look like if during an election time someone starts blocking votes, or prevents a whole region from voting for one of the candidates? That make no sense at all.
Counter argument was that this view considers SPOs as a “public good”. This also makes no sense if we view delegating as voting. Voting is and must be 100% public. Obviously! SPOs that do not run private pools CHOOSE to be a part of public voting process, just like anyone running for the public office. Also, just like any election campaign there will be costs and materials used, time invested and advertisement. That doesn’t make elections a business franchise with elected officials as owners and voters as customers. This is where SPO as business analogy fails.
This is also where most of Cardano community feels that it doesn’t describe their vision of Cardano. In real life there is no examples where elected officials can make a business out of being elected (almost none). So this is a new model and requires our community to think about it and define it. Getting stuck on justifying existing system models is not why we are here.
So, next premise (after a few paragraphs 
):
2. Delegation is act of voting for public SPOs
And of course, just like any voting:
3. Every delegator (voter) must have identical access rights.
4. Every public SPO must provide equal access to delegation.
This further assumes that
5. Layer 1 can’t ever be hard forked to remove points 1,2,3 and 4
If 1,2,3 and 4 are to stay TRUE, then 5 is a must.
At this point it looks like we may not be able to reconcile delegations with SPOs as a business and regulatory pressure. If you feel like this, then you probably fell under that Contingent-Staking-KYC-Twitter mental block. Lets drive right trough that block 
So, if we reframe these issues into our terms.
Only thing that (maybe) stops us from delegating as voting and treating SPOs as business at the same time are… rewards. Yep, that’s it. It is only because this may be seen as financial gain that SPOs may be in regulatory trouble. For example, no one is going to shut down Americas Got Talent if someone from Iran or North Korea phones in to vote for their favorite performer.
So, lets give SPOs full control of rewards and who can get them. But wait, you may say, they can already do that trough setting a margin fee to 100% and air drop to only selected wallets. TRUE!
So no issue there.
What about ISPO issue? Well, there would have to be some kind of a contract that can guaranty a pay out after some time or some conditions are met. Sound like a smart contract to me.
So no issues there.
But KYC? What about governments that want their KYC? Well, for that you would need such governments to approve (or issue) DIDs. So until governments start issuing or recognizing DIDs (or other forms of digital identity) you can’t implement a digital KYC method. So any SPOs that want to engage in KYC required ventures need to follow already established KYC rules or wait until their jurisdiction approve or create one. There is nothing you can code on any layer of Cardano that just become a law via hard fork.
So no issues there on Cardano side.
But what about SPOs having freedom to be a business and choose their customers?
This looks like if 1, then can’t have 2,3 and 4 ?
Well, that’s where the new system comes into place. You can’t prevent who votes for you, but you can set a system so rewards in ₳ or what ever else SPOs provide only go to wallets SPOs select. That is the extent of the compromise that can be made. Any side chain or layer 2 solution that lets SPOs fine tune rewards distribution is more then welcome. But they get no say on who is allowed to vote. So:
If 1, then more control needed for SPOs
1 if and only if 2
2 is not affected by rewards distribution control
There for 1 can co-exist with 2 if higher control of reward distribution is added for SPOs
This solution may hurt some, but once layer 2 and sidechains develop they will see that ₳ rewards will be irrelevant to their business.
What about the attack vector of whales over saturating pools?
Well, that is a protocol issue and can be resolved through code. Adding partial staking to wallets that will only delegate up to maximum left to saturation point and no more would be a start. And/or immediately moving fees to 100% so SPOs can manually resend to non attacking wallets and so on.
Issue is solvable through code without restricting delegation.
The point is not to get stuck on just one idea that makes community feel like we are abandoning the revolution. Nor is this regulatory fear mongering a good reason to just mess the base code up quickly.
We are not here to please powers that be by adhering to their archaic views of money and laws.
We are not here to try and fit into bureaucratic loopholes nor try to hide in unregulated domains.
We are not here to justify or condemn parts or whole systems.
We are here to build a new system. 
Cardano .
To do this we need to set our basic principles as a guide line for our path. We need to show everyone, especially each other that we are on the same path. Solutions to problems such as contingent staking or KYC can be automatically answered and guided by direction we set.
We need constitution
Get your favorite Cardano leader, influencer, project, developer or degen to start talking about Cardano constitution. Let us all focus on building Cardano up instead of tearing each other down. Cardano needs more then just a code and a hard fork. Cardano needs its citizens to acknowledge a way to be governed.