the record is as straight as it ever was. Coinomi wallet was caught sending the seed (something that should be created locally, stored locally and kept from the outside word) to the outside world (a third party server).

wrong. the same doesn't go for open source wallets because we can easily look at the source code and know what the hell it is doing and then make the decision whether we want to use it or not. with closed source wallet we don't know anything.