Very few people in crypto understand (or in some cases, care) what crypto stands for. They just want to gamble or someone to gamble for them. And then talk trash about crypto after they lose everything.
It's hard to really build a true alternative system with people with such a mentality.
Regulations... Everything that handles fiat too will be regulated, that's almost certain. In fact, regulations already started... Have you been asked to regularly verify your account on major CEXes or have your account limited to withdrawal only?
The fight is to keep their power-greedy hands off crypto, as much as possible.
But let's not foul ourselves. We have plenty of problems. Have you seen what a dominant position Binance has? And CZ was looking to bring down a few other competitors besides FTX. Nothing like an induced "bank run".
And that's CEXes+DEXes.