Ever since Bitcoin launched back in 2009, the rise of centralized exchanges has been inevitable. A few years later, and now the whole crypto market is dominated by centralized exchanges. While there have been many alternatives to the solution (such as decentralized exchanges), people are still performing trades at centralized entities.
Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.
Nonetheless, what are your thoughts about this?

Because very few people understand the pure concept of decentralisation yet, mixed with the effort of having to figure things out for yourself.
I've had some real conversations over the last few days on this forum with people that have told me stupid things like "crypto is just money" and that sort of ilk. I mean I don't blame them per se - a lot of people entered into this industry when Bitcoin was flying high and ICOs were pitted on ANN threads in their hundreds per week. A lot of folks here I'd hazard a guess wouldn't know what it was like to have only Bitcoin, Litecoin and Dogecoin as the main three coins and when someone had the balls to make another coin it was like a whole month event. Hundreds of people would flock together to throw their hard earned money at another coin that promises to do exactly the same as what's currently available but BETTER, and in the end the devs would just give up and run away with our bitcoin. Innovation was non-existent. But boy anonymity was integral - and we valued that above all else. Even if it did mean losing a btc here and there. It wasn't much anyway at the time.
Now we've sort of entered some weird alternate reality where it's all about the money and nothing about the vision - no-one cares about the original vision of satoshi anymore. Most projects pitted to us today are more or less centralised, as are the exchanges, and the people that run them.
But that's people I guess. Never underestimate the human need for control.