For a long time I used CEX without needing verification; the deposit and withdrawal limits were more than sufficient. In my case, the situation changed because of regulations in my country, and CEXs operating here are required to request KYC. Even so, I can choose from many others that are not required and are available to me. Not declaring BTC or any other cryptocurrency I own can lead to imprisonment and fines, so unfortunately, I have no way to avoid it. My privacy or tax evasion could be my downfall.
DEXs are great for staying in the cryptocurrency environment, exchanging one for another, but they don't offer me the possibility of exchanging for my country's local currency, which is what I need to do most of the time.
There was never use of kyc, some exchanges that are kyc compliance today never had kyc before, they were force into implementing it because they feared what will be their business if they don't follow what the government says. You can see Binance was recently forceout of Europe, it's because of government and politics. If you don't do as they say, you are going to either get pack out of the space or you will have to listen to them like they say.
If you don't have business with fiat, I don't think centralized exchanges are of any good use. There are plenty of decentralized exchanges, we have some decentralized p2p already, it's just that they don't have liquidity but some regions that are having difficulty in p2p are many in there unlike regions were Bitcoin is friendly. You are better off centralized exchanges, nobody will wake up one morning to want to lock your coins for any reason, Dexes are better by far.
