This equaly applies to any country where Kagi is selling their products. Kagi will be obliged to comply with local regulations.
Making it impossible for Kagi to provide data IS the way to go.
I'm not asking to remove that feature. just make it safe by storing data encrypted by a user only known passphrase.
"If Kagi is not at present using end-to-end encryption"
If you can reset your password and still be able to access your data, they are not.
Also, w.r.t point 1. I'd rather know the system is "stupid human" mistake-proof