Unpopular opinion: I don’t think holding on exchanges is that bad

We have all heard it before "Not your keys, not your coins". It's almost the number one rule in Crypto. However I don't believe it's that "big" of a deal. First off, for small bag holders, the fees in transfering to wallet eats a good chunk of the coin. It does not make financial sense to 50 or so bucks on 100$ of coin. The risk of losing key access also becomes mitigated. The biggest concern is security and rug pulls, but more and more exchanges are becoming established entities. At the early stages of adoption where Crypto is being treated as a investment rather than use, I don't think holding on exchanges is that bad and I think it makes more sense than a wallet (if fees are in play).

EDIT: Forgot about the Tax Implications of "liquidating" (I.e moving coins from exchange to storage) coins from exchange. This could potentially cut into profits even more! *Depending on your country