That's a good point; but I don't really believe you need privacy, untraceability or even self-custody if you see cryptocurrencies as just a means of speculation / trading. Because then you're just buying coins to sell them higher later. Traders don't aim to use the coins as anonymous, P2P cash anyway. They only want to maximize fiat holdings and never intend to actually use the currency. So therefore they couldn't care less about anonymity and privacy, right. That's a whole different use case.
For them the main aim is profitable trades and they have to trade cryptos so these exchanges are suitable for them but those who wants to hold their coins safely then avoiding these CEX is the best alternative to them as they have your keys and can freeze your transactions anytime so what safety do you expect from these platforms.
We are users and holders not any competitor of these CEX who wants to establish their business by defaming them as the problems are real faced by many and just want to guide them to don't cater these exchanges.When you are storing decentralised cryptos like bitcoin on these centralised platforms then you deplete the base aim of using these coins and don't expect privacy and safety from them at all.
Those who are into trading also needs to have some P2P or decentralised exchange because there are lot of risk with these CEX and it's not hatred for them but only our precautionary measures to keep our funds safe form them and don't know how your KYC documents are being used by them are keep track of you with imposed restriction.