Unfortunately, it does not. Likes of FTX and Binance was created in the first place because on chain transaction is slow and expensive, and people don't like slow and expensive. Just because FTX blew up doesn't mean DeFi is at a better place than it was in the past.

"DeFi fixes this" is like saying "moving back to horse drawn carriages will solve drunk driving fatalities!" Maybe, but no one wants to deal with horse shit.