Yes! Non-custodial is accurate for majority of "DEX". We got to wean off these terms. Took time to wean off "revolutionary" but I think we'll get there with "decentralised" - they have their places but they can be very misleading these days. Fully decentralised is a long way off, definitely agree, and may never be in fact what's desired even if possible. I do feel that we're closer than we think though, with atomic swapping, off-chain channels and 2nd layer stuff, if they can all inter-operate and every architecture is made open source and public domain, we can be close enough.
yeah i've seen references to LN potentially being used for decentralized altcoin exchange, but i'm not sure how it works or if anyone is working on it. between shapeshift enforcing KYC and non-custodial exchanges either getting busted or implementing KYC themselves, it seems like options are really thinning out for traders.

Yes sir...my thought too!...let see how it plays out...