I somehow agree that centralized exchange already became bitcoin bank, because most of the users are now using those centralized exchanges and have been upload their details in order to verificate their account, we can't avoid using echange without verifivation because they will limit some features such a minimum withdrawing or even do a trade.
Anyway. It depends on your crypto asset value. A lot of people use centralized exchange without verification. It is only when you have tons of btc that you begin to feel bothered about verification and besides why would someone keep a lot of BTC on exchange account. It is not save. I still prefer to use Centralized exchange because many of the decentralized ones are a piece of shit. From etherdelta to mercatox to forkdelta. From my experience, it is always rigorous to use and i dont like to upload or enter my private key on any exchange.