I have followed several events on their blog and they have managed to raise good investments from venture capitalists with a legit team that doesn't hide behind the shady domains. Having access to user funds will not impress any investors to put any money on the start-up as they know the market evaluation will drop drastically if someone with the lost password claims their coins have been moved.
Venture capitalists make wrong investments too, so their confidence in a project or business they invest in isn't by definition an indication that it's all safe and sound. In fact, a lot of venture capitalists (including Tim Draper) have lost millions of dollars investing in token projects, where most of these projects were very questionable to begin with.
People don't need blockchain.com for anything nowadays. They are way better off simply installing a mobile client such as Electrum where you for sure know that your funds are safe and ONLY controlled by yourself (obviously assuming your device isn't hacked). No matter how 'safe' blockchain.com is said to be, I will never trust them and I don't have to. I am my own bank.