The litewallet is still being worked on as far as I know, but should be out very soon.
Exactly. Exchanges which enforce KYC/AML rules on their customers are NOT decentralized as they claim to be. Consider CryptoBridge which claimed to be a decentralized exchange based on the Bitshares blockchain. It did not last for long after it started requiring users to verify their IDs. Even the so-called Binance DEX is centralized by design. Most exchanges use the term "decentralized" as a buzz word for attracting as much people as they can into their platform. But at the end of the day, they're bound to the risk of a single point of failure.
Which is why, I rest assured that Block DX is the only true decentralized exchange in existence. Aside from that, atomic swaps will bring more censorship-resistance to the crypto space. As long as there are developers working on truly decentralized solutions for the exchange of one crypto to another, it'll be impossible for governments to take down the system in its entirety (if they decide to do this in the future). Other blockchain projects should follow Block DX's model by creating other decentralized exchanges based off Block DX's source code. Otherwise, centralizing forces will dominate the industry until crypto becomes dependent entirely of governments' (and central banks) needs.
Nonetheless, time will tell us if decentralized exchanges will be able to topple centralized ones within the crypto/Blockchain industry. Considering the way crypto is heading to (centralization), it looks like DEXs will be the minority in the Blockchain space for a very long time. Just my opinion