I agree.  CEX may not be the best ingredient for the privacy that is characteristic of crypto, but it does contribute to making crypto popularity richer and more diverse.  For example, how does a newcomer come in simple exposure to crypto - P2P, etc.  They need to have fulcrums and CEX responds well to this part.  But what about the market reaction, crypto risk cannot depend on CEX, much less in the future when bitcoin is in a difficult position with respect to regulatory constraints.  The response of demand will be DEX, although development comes at the expense of a few things, but CEX also has a role to play in transforming that demand.