That's true. Hardware wallets are majorly used by large crypto holders. Some on the other hand uses hot wallets like metamask, trustwallet, e.t.c. It is undeniable that exchanges has caused a lot of problems due to either hack or owners absconding with users funds but I think some CEX like Bitget have taken note of this hence the reason they have introduced Bitget wallet for users to have full custody of their assets.