You can't just walk up to a bitcoin ATM, put in cash and get out bitcoin, you typically need an account associated with the ATM that requires you to be linked with a bank account or otherwise mandating very invasive KYC that basically turns them into a functional intermediary in the sense that they can track all your payments and arbitrarily deny service based on your identity like e.g. coinbase.

LocalBitcoins is not practical, nobody wants to meet up in the streets to trade cash for bitcoins.

With the ATM taking some of your money for its convenience...