They want it so bots can't front run their buys/sells, and they want it because it sells, way more then transparent transactions on the chain
That's an interesting point of view. Indeed, centralized exchanges have this downside in which they know when you want to sell or buy. They can approach what the majority wants and take advantage of it. They don't just hold your coins; they hold your interests.
I don't trade, but if I ever want to buy a cryptocurrency, I'll use a decentralized exchange instead. I highly doubt the majority will do either, but at least I'll feel alright with myself.
It doesn't only apply to centralized exchanges, i mean that your transaction history will be literally public forever on the blockchain when you use dex. Then it's only matter of doxxing the account, and in any point you need to change it to cash, it will be a weak point what comes to your ID, even if you would do it face to face, some people will see your face.