There are two sets of people who could do this: newbies and traders.
Newbies are not so adept at using wallets outside of an exchange and it's preferable for them to
store their bitcoins with an exchange. Wallets are of course complicated, especially the concepts of private keys.
Traders, of course, need to have some bitcoins on an exchange in order to be able to carry out trades as fast as possible.
The last reply from this thread is august 2018 , lol nice digging tho

Anyway , you are correct . noobs dont engage on trading and investing , therfor they arent require to use some kind of a paper wallet or hardware wallet .
While pro and veteran crypto users are actively buying and trading , thats why they usually store their coins inside an exchange for lesser hassel and for lesser fees as well .