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.
The two are in completely different leagues. If I withdraw coins from a centralized exchange, then the exchange knows my real name and address and has copies of my ID, knows my bitcoin address I am withdrawing to, will use blockchain analysis to track that withdrawal to make sure I don't do anything illegal with it, and will share all that information with third parties and governments. If I buy bitcoin on a DEX, then a single person knows my bitcoin address, and might know my name depending on the fiat method we use. A DEX is far more private, and even has the potential to be anonymous depending on how you use it. A CEX is neither.
Then it's only matter of doxxing the account
The best DEXs don't require accounts.
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.
It is incredibly easy given the current situation to almost completely cover your face and not appear at all out of place. Or if you really need to be anonymous you could use an anonymous money order, cash in the mail to a PO box, cash drop off, etc.