You are of course right in saying that the Modern, as played against 1 d4, leads to positions similar to the KID. Modern players try to achieve those structures without the theoretical hassle that comes with the KID proper. Sometimes the Modern move order (kingside fianchetto without Nf6) constitutes an advantage over the KID, say if White responds to the move e7-e5 by playing an early d4-d5, which allows Black to play f7-f5 in one move since, unlike in the KID, Black hasn't blocked the f-pawn with his knight).
The risky part comes in when Black absolutely insists on avoiding any transpositions into KID theory. Probably the most critical position in the Modern (against d4) occurs after
1 d4 g6
2 c4 Bg7
3 Nc3 d6
4 e4
Here it clearly seems most natural to just play Nf6 and get castled, but that would simply be the KID! What else can Black do? The move 4 ... Nbd7 only postpones the decision and would eventually lead to an older line of the Classical KID.
The two remaining independent choices are 4...Nc6 and 4...e5. Both attack the point d4, a common motif in the Modern, where the bishop on g7 puts pressure on d4 since it is not blocked by a knight.
Unfortunately both moves are edgy, e.g. 4 ...Nc6 5 d5, and the knight has to go to the precarious square d4, when White seems to get a good position in various ways. Or if 4 ...e5 5 dxe5 dxe5 6 Qxd8 Kxd8, and now 7 f4! is the most dynamic way of playing this semi-endgame (which otherwise would be promising for Black in the long term due to the weakened d4 square).
Another drawback of 1...g6, at least from the perspective of elite players, is the relative freedom of development it gives White. After all,
1 d4 g6
also allows White to forego c2-c4 and instead play 2 e4 and 3 Nc3. Those positions should officially labeled "Pirc Defense" if Black plays an early Nf6, and "Modern Defense" otherwise. The Modern has a pretty good reputation here by comparison, but then among GMs the Pirc is regarded as relatively risky to begin with.
You are of course right in saying that the Modern, as played against 1 d4, leads to positions similar to the KID. Modern players try to achieve those structures without the theoretical hassle that comes with the KID proper. Sometimes the Modern move order (kingside fianchetto without Nf6) constitutes an advantage over the KID, say if White responds to the move e7-e5 by playing an early d4-d5, which allows Black to play f7-f5 in one move since, unlike in the KID, Black hasn't blocked the f-pawn with his knight).
The risky part comes in when Black absolutely insists on avoiding any transpositions into KID theory. Probably the most critical position in the Modern (against d4) occurs after
1 d4 g6
2 c4 Bg7
3 Nc3 d6
4 e4
Here it clearly seems most natural to just play Nf6 and get castled, but that would simply be the KID! What else can Black do? The move 4 ... Nbd7 only postpones the decision and would eventually lead to an older line of the Classical KID.
The two remaining independent choices are 4...Nc6 and 4...e5. Both attack the point d4, a common motif in the Modern, where the bishop on g7 puts pressure on d4 since it is not blocked by a knight.
Unfortunately both moves are edgy, e.g. 4 ...Nc6 5 d5, and the knight has to go to the precarious square d4, when White seems to get a good position in various ways. Or if 4 ...e5 5 dxe5 dxe5 6 Qxd8 Kxd8, and now 7 f4! is the most dynamic way of playing this semi-endgame (which otherwise would be promising for Black in the long term due to the weakened d4 square).
Another drawback of 1...g6, at least from the perspective of elite players, is the relative freedom of development it gives White. After all,
1 d4 g6
also allows White to forego c2-c4 and instead play 2 e4 and 3 Nc3. Those positions should officially labeled "Pirc Defense" if Black plays an early Nf6, and "Modern Defense" otherwise. The Modern has a pretty good reputation here by comparison, but then among GMs the Pirc is regarded as relatively risky to begin with.