Yes, you're completely correct. Kagi seems to have a very good product, it would become better if it would become a "good" company. I do everything to not use any big-tech software and services. In search it seems the options are limited.
Aye, the search situation is rather dire. I also try to distance myself from big-tech as much as possible, but it is rather difficult if you still wanna live a digital life. I don't feel like going full Richard Stallman, having to entirely avoid web browsers.
Just gotta cut your losses at certain points and accept less-than-perfect-but-still-better solutions.