Failed Verification, will I face account issues by NOT re-submitting?

Wasn't able to find an answer to this question in previous threads.

My Binance KYC verification failed because I'm very careful with uploading photos of my ID. I retract certain info using stickers (driver's license number, healthcare number, etc.) that is not necessary for Binance to know in order to verify my identity. I also edit the image so that the quality/size is low-grade and add a void watermark, but still keep the necessary information legible. I just don't feel secure uploading a high-quality image of my of personal identity card, and I think this is a reasonable stance to have.

Well obviously my ID upload failed Binance's verification system. I knew it would fail the machine-learning algorithm because of the edits, but I thought it would be eventually reviewed by a human who would obviously be able to make out the necessary information. However after one week of pending, I received a failure notice. I am guessing they want a high-quality image, and I just refuse to upload that. So I'm not going to re-submit, as I don't think it's not worth the risk of identity theft.

Will having a failed verification affect my account in any way? Could my account be held hostage in the future, restricting my access to my coins? Has anyone used a failed verification account indefinitely?

Heard a few horror stories about accounts suddenly being flagged for termination.