So how is the initial peer discovery happening again? Isnt that part centralised problem? Any suggestions how to solve it?
AFAIK the only benefit of decentralized peer discovery is to be resilient to censorship.
No, not really. One example where it's not about censorship is offline scenarios, but connected to the same network. If there is a central, upstream server for discovery, you won't be able to find other peers. If the discovery works offline/locally (as with Bonjour/mDNS), you can still find other peers. So it has a lot of value.