there was a topic i read here the other day about self custody being more difficult to achieve than third party custody
Isn't it amazing that centralized exchanges have managed to convince people that writing down 12 words is outside of their capacity, and they need to give all their coins to complete strangers instead.
that is the idea that a lot of people have and so they sleep well because they think the third party service is their safest option in keeping their BTC.
Pretty much every centralized exchange has lost coins in a hack at some point, so such an opinion is just provably wrong. Or take a look at FTX as a shining example - one of the biggest crypto exchange in existence, and court documents show that they were storing private keys on an unsecured group email account. This is the kind of "security" you get with centralized exchanges.
People like pushing their responsibilities to someone or an organization. But the recent happenings involving exchanges have made people wake up and take the responsibility of safely keeping their keys and learning how to pay attention to details.
One of the impediment to avoiding or boycotting the use of these exchanges are the difficulties encountered when converting bitcoin to fiat. Some local currencies or country are not listed in some of these decentralized exchange platforms and P2P trading have not developed in some countries. Like in my location we are trying to build a viable bitcoin community that would promote P2P transactions. I am sure in a few years centralized exchanges would have less influence in my locality.