Most people use Centralized exchanges because either that exchange offers something good that no other exchange offers, or they do not have other options. Take me, for example. Cryptocurrency is banned in my country. I don't want to deal face to face because of privacy reasons, and a couple of exchange websites can scam users anytime. I have seen a lot of people get scammed on those websites.

Currently, these centralized exchanges are the only options for selling my USDT for my local currency. I have started hunting airdrops lately, and some centralized exchanges offer zero-fee trading, bonuses on deposits, and many other things. I wouldn't use them if I had not been KYC'ed before. But, I am already KYC'ed on a couple of exchanges which is the reason I am still using them.