If only the CEX operator are honest. Does not use the users funds secretly and then improve their security at all times then I think users won't have a problem at using them even if they store their funds on it for a long time but also the user must ensure that they are also fair and follows the CEX rules so that no problems are going to happen.
Covertly using users' funds was an extremely condemned and unforgivable way, it became the starting point of their downfall. and the impact of course affects all CEXs which are currently operating properly. The reputation of every CEX is questionable and regarding the security of user's funds they will be very careful. Nothing is safer when we store in our own private wallet, have full control and no one can manipulate. but also need to be aware of the security of the wallet. Dishonest CEX will only be trashed and abandoned like FTX.
What CEX can do, DEX can too. Which is like you said to connect traders, So it would be better if you can just say that a crypto exchange are the ones who connect traders all over the world. This forum is also another example where traders around the world can connect. They can talk here and exchange ideas other than coins.
The bitcointalk forum is a link for all crypto users to exchange ideas and discuss what is happening right now, such as the FTX crash and the bad security of CEX which misused user funds. it will all be discussed here and get a lot of criticism and condemnation, so CEX like that will be destroyed and all its users will leave it.