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3. Privacy. Embedding a wallet in a phone link my wallet to my IMEI, that is linked to my identity. That phone comes with an embedded KYC
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Especially for number 3, assuming that one's phone is a rooted phone which might affect the IMEI (happened to me quite few times where my IMEI went missing) and I might need to reconfigure it where it assigns my IMEI randomly just to get me started in using my mobile network carrier.
It is convenient to have a phone but the convenience becomes an exploit for hackers to gain access to your phone such as untrusted networks when you connect to some free Wi-Fi nearby.