It's not a question of IF something will work (something broken is a problem, though).
It's a question of IF something brings utility to the mass market and if the mass market is utilizing this service. The NXT asset exchange as far as I can tell works extremely well. Much like BitSharesX's bitassets may work. The reality is asset trading just doesn't appeal to the plurality. It's also reinventing the wheel as if I really wanted to trade $USD then I would use real exchanges and not a crypto.
Main reason people went into cryptos was to escape the inflation of the $Fiat. Why do I need to deal with assets and other gimmicks when they already work pretty well themselves in the real world?
It's also a question of IF something is proprietary. The first mover advantage is great but what stops NXT from doing their own collateral or pegging system or a near-equivalent thereof?
I'm not sure how many times people have to tell you this, but the Nxt asset exchange is not the same thing as Bitshare's bitassets....... they are two completely different concepts. It seems like you still don't understand what bitassets are.
It's also reinventing the wheel as if I really wanted to trade $USD then I would use real exchanges and not a crypto.
It is nothing like reinventing the wheel...
Centralized exchanges suffer from many vulnerabilities/risks/inconveniences including risk of government asset seizure, losing funds due to being hacked, volume and price manipulation, going insolvent due to bad business practices or running ponzi-like schemes, complicated know your customer requirements (it can be hard or take a long time to get "verified"), Etcetra. (I'm sure I'm forgetting something.)
Technically, a decentralized version would suffer from none of these problems.