You/We can use centralized exchanges but only for trading purposes, other than that like keeping your/our funds in these centralized exchanges for any reason is wrong. Because you do not have the private keys of the wallets of those centralized exchanges management can freeze your funds at any time they want.
And can you tell me who the hell keeps its funds on the exchanges? There really are such dummies? Because I kept my currencies in the wallet from the very first day in crypto world and I never knew that someone does in another way.. Then they pay for their stupidity.
Of course, some traders keep their funds on the exchange and may use their funds to trade. But they only keep a small amount and the other funds in a separate wallet so they can control how they are used. We can't blame those who keep their funds in the exchange because they may have reasons for doing it. But hopefully, no one will get into trouble like yesterday's FTX case and immediately move the funds to their personal wallet.