Doing this right is a balance of security and simplicity. If we try to do it in a way that is overly convoluted, or requires a very good memory, or would be difficult to communicate to another trusted human, we are increasing the possibility of a "foot gun". When I have thought through these I have tried to come up with schemes where I would combine a set of keys for multi-sig with decoy amounts in the wallets associated with the single keys, along with BIP39 passphrases, AND the use of exotic derivation paths. I began to realize that if I over-engineer the method in the name of "security" I am increasing the chances that I can make a mistake, or simply forget one of the things I did.
The great thing about Bitcoin is that (unless you do it wrong), you start from a position of unimpeachable security. A random 256 bit number (or series of such) completely unknown to anyone else. It's true that management of that poses some difficulties but solutions tend to be problematic only in that they have reduced security compared to the maximum security bitcoin provides and not in comparison to more traditional options for wealth storage (which look pretty poor in comparison).
And unfortunately, for some (most probably) users a bitcoin bank may be the safest solution even taking the counterparty risk into account. Leaving your bitcoin on an exchange, or in your CashApp wallet is rightly frowned upon by we OG elite... but until we have better trust minimized options it still might be best for the masses.
I wouldn't really agree. That's kinda throwing the baby out with the bathwater. It may just require more sophisticated key management techniques and for people to become more aware of their availability. Your bank and another party might participate in an m of n arrangement, for example. (Though bviously, you are sacrificing some security there, it's still better than trusting someone else with all your funds). The major thing is education though. Of the people I gave Bitcoin to in the past, none of them took notice of my warning to take backups of their wallets.
I certainly agree with this from a idealistic standpoint... But I have found even just getting a lightbulb to go on when just describing what makes bitcoin different than say, Venmo can be hard. So helping Joe Sixpack custody his own keys safely is tricky.