[edited out
Okay just consider the transaction fees it will take each time you try to withdraw a small unit of Bitcoin from your exchange to a non custody wallets, so it looks unprofessional even if a newbie may not understand this but it is still important for them to know because those amount that would be lost as transaction fees can still be retained if you consider accumulating a larger amount before withdrawing out from an exchange.
I agree with all of the points of your post Btcdeybodi; however, there is something wrong with your seeming to ONLY think about the withdrawal transaction fees, and anyone who moves quantities of bitcoin from third-parties, such as exchanges (or even makes other kinds of BTC transaction choices that result in the creation of both sending UTXOs and change UTXOs), should also be attempting to consider future transactions that come from how and where various UTXOs are held. If a guy has a bunch of small UTXOs, some of them might either become unfeasible to spend, but the fees from having a bunch of small UTXOs could also end up taking a very large toll upon how much actual net worth (or value) that a guy has in bitcoin as compared to what he believes that he has... I had already mentioned an example of the difference between someone who has $3k to $5k held in just a few UTXOs as compared to another person who might have that same quantity of value held in 100s of UTXOs.
You are right actually because each transaction generates it's own UTXOs which means that if an investor decides to be moving out small unit of Bitcoin from an exchange to a self custody wallet, it will certainly create too many UTXOs which in most cases are not spendable so just as part of the Bitcoin will be lost as transaction fees that's how some will also be lost as UTXOs so all these have to be put into consideration so that we don't get into making withdrawals from an exchange after using Fiat to buy Bitcoin, at least it will make more sense to accumulate a higher amount of Bitcoins before moving them to a non custody wallets so that even if some are lost to UTXOs and transactions fees, it would not be much as someone who keeps making withdrawals all the time.