I've said this before many times. Money talks. If, when Coinbase decided to spring "enhanced KYC" on all their users, all their users just said "No thanks, I'll take my business elsewhere", you can guarantee they would reverse that decision within the hour and by the next day they would be lobbying governments and buying out politicians to change the laws to be more privacy friendly. If, when Binance decided to start charging 100x more than they needed to for withdrawals to trick newbies in to accepting their centralized scamcoins instead, all their users just said "No thanks, I'll take my business elsewhere", you can guarantee that those withdrawal fees would drop by 95% within the hour. I'm far less optimistic than you, though. In a space filled with people who will throw money at obvious scams, who talk about centralized altcoins like they are the next big thing, who think privacy is only for criminals and that government oversight is a good thing, then the vast majority will quite happily roll over and accept whatever nonsense centralized exchanges thrust upon them.

There will always be a strong privacy focused group of users to build and promote things such as Bisq, ChipMixer, JoinMarket, and so on, but unfortunately there will always be a much larger group of users selling themselves and bitcoin out by handing over every last shred of data and dignity to anyone who asks for it.

This is only real solution, I think. Too many people will always be too willing to surrender their privacy for the smallest convenience.