Centralised Exchange control your funds for you while in Decentralized Exchange you control your funds by yourself...
So Which on is better??
Mr Shade
The answer to this question I think is as simple as it appears. You didn't just ask about exchanges but also explained what CEX and DEX is all about and considering your explanation, one should easily understand that DEX gives you full control of your money while with CEX your money is at the mercy of a third party. That said, I think it's very easy to say that DEX is simply better and safer.
Everyone who loves privacy and don't like a situation whereby there digital money would be at the mercies of a third party would simply go for DEX cause it more safer than CEX, moreover I don't think most people would prefer an exchange where safety is not fully guaranteed over one that better when it comes to security.
Anyways that doesn't mean CEX is useless, it has it's own advantage which is that risk takers who invest in short-term coins can buy the coins that are not listed on DEX from the CEX, cause not all coins are listed on DEX but most of the new projects are often listed om CEX.