Xapo owner is a well know entrepeneur in silicone valey and one of PayPal directors. We dont own the private keys but know to who we are trusting it.
Well its expensive but Security have a price. I never heard before about Electrum wallet to have bunkers spread around different continents to store 85% of coins on coldstorage and a satéllite to do surveillance to website.
Security is the most invested thing in this world that probably the reason why xapo's fee are increased and will never change and go back to the lower ones. I'm into security but it's still better to have the private keys, you know what I mean that we have to hold it. He may be a well known entrepreneur but still it's a normal thing that you need to have the private keys of your bitcoin wallet.
Who os Electrum wallet owner?
https://electrum.org/#about