That's pretty much correct. There's a ton of wallets out there that doesn't require KYC, but if you want to withdraw your funds to a bank account you must most likely do KYC.
Yes, you can buy stuff like prepaid credit cards.
You can also get reloadable cards you can top up with BTC that doesn't require BTC. Top up fees are usually 0-8% and a virtual card will cost you usually like $0-70. All these cards (prepaid and the others) usually have a bit hight decline rate though.
One straight forward example is paywithmoon.com (non-3DS). Low top-up fees and $4000 monthly limit, just deposit some BTC and you're ready to go, don't even have to pay to issue a card.