Of course direct peer to peer exchanges are possible. In fact, I would trust some of the members here more than I would trust most of the exchanges.

not to mention the multi signature capabilities of bitcoin which has opened up a lot of possibilities including a more trustworthy escrow with 2 of 3 multisigs. or even a 2 of 2 multi sig between the seller and buyer can be more secure. all of which makes peer to peer exchange not only possible but also safer.