From proxy-tokens DEX to multi-sig escrow DEX to atomic swap-enabled DEX, the decentralized crypto trading ecosystem is evolving, but this evolvement is yet to address issues related with liquidity/advanced trading functionality/user-friendly interface, but at the same time, platforms like Blocknet and BarterDEX are somewhat resolving the user interface issue.
Although centralized exchanges are against the ethos of decentralized cryptocurrencies, I don't think they are going anywhere. There would always be investors who would prefer centralization/convenience over decentralization/ideology/privacy/security. The early investors traded Bitcoin in a decentralized environment, but the next wave of adoption which is in process now, 90% of investors were introduced to crypto market through centralized means.
But, I think, in the long-term as the crypto market matures and decentralized trading platforms comes up with better functionality and user experience, the adoption phase from here would be dominated by investors who are privacy/security oriented and do understand the potential of trading Bitcoin in a decentralized environment and I guess from this point we will be seeing a big switch from CEX to DEX, but definitely it's going to take some time.
I don't think there's anyone who wouldn't support DEXs - I've been waiting for over a year now and have to say have been mildly disappointed with how unsatisfying they have been - with the mild exception of Waves, for example. But as you said, there's that Catch 22 issue that's affecting DEXs even though they've been around for two years now. Liquidity is still the killer. People won't come to DEXs if there's no liquidity, but there won't be liquidity until people start coming onto them.
I haven't been successful in getting people to trade over Waves or even Counterparty - even though the former has got an interface that's as simple as could be.
I think once atomic swaps become as easy as single click execution, we might get a new wave of people coming onboard. But not until people actually learn how to use their own wallets can that happen. Most are still perfectly happy having a custodian (centralised exchange) taking care of their funds.
