While DEXs have gained momentum and offer notable advantages such as decentralization, user control, and privacy, it is unlikely that they will completely replace CEXs in the foreseeable future.
Both types of exchanges have their strengths and weaknesses, and the coexistence of CEXs and DEXs is more probable, catering to different types of traders based on their preferences, trading strategies, and regulatory requirements.
There will never be a time that DEXs will replace CEXs, never!
If there should be a replacement, the reverse should be the case. But coexistence has always been better.
CEXs are the friends of the government. The government like centralization such that they can control, manipulate and tax everyone. So they work closely with CEXs to collect KYC data of people. So, government will choose to ban non corporating DEXs than banning their allies CEXs.