RE: Use your witness votes and get the Community Badge

Hello there.
I'm quite new here and am now studying witnesses. (What a great time to start Steemit, as recent events pushed everyone to talk about what's happening behind the scenes)
My first question would be, is it truly illegal for exchanges to use the funds at their disposal to cast votes? I understand it is not "right" and the lack of prior communication doesn't help their case but, don't we somehow forfeit the right to vote by letting them hold our tokens?
Secondly, are there exchanges planning on building/allowing User Interface for holders to have their own voice?
I would also ask anyone reading this to kindly forward me resources to help me select witnesses (I'll do my own research in the meantime, don't you worry)
Thanks in advance and have a good day.