This is healthy for proof of stake. Exchange validators tend to be slow to upgrade software, and do not engage with the community or participate in on chain gov

This is healthy for proof of stake. Exchange validators tend to be slow to upgrade software, and do not engage with the community or participate in on chain governance votes. They are not accountable to delegators because the funds that they stake come from low-knowledge speculators, and they also are not exposed to the token's price movements much. Kraken was one of the best as far as exchange validators go though.