It looks like the $5 wrench attack came up a few times as well. Easiest way to avoid that would be multisig. Spread those keys across the land. If someone holds you up until you give up your private keys, you can't.
We do need them for mass adoption however. Paper wallets can't take us the whole way.
100% disagree. Unless they're 100% open source you're trusting them, which means you are potentially leaking keys, meaning you're not the only one holding your private keys, meaning you might as well have stuck with legacy banking since you obviously can't be your own bank.