it's one thing to want to stay protected from a thief who targets you and wants to steal from you. It's a whole other level if you get on the radar of a serious government agency who decides to take you down (darknet markets, Silk Road, etc.).
If you are a target of a major government or one of their agencies such as the FBI, then the security of your wallets is almost inconsequential. They'll put you in jail regardless.
Laws specifying whether you can be required to provide your decryption key or password for data files to law enforcement or other agencies vary depending on the country you live in. US courts seem to (so far) be saying that doing so would violate an individual's Fifth Amendment rights. I'm not aware of any rulings in the US relating to handing over your bitcoin wallet passwords, seed phrases, private keys, etc., though. There was a case in Germany of someone who spent two years in jail (he's since been released) for installing mining software on other people's computers, but refused to hand over the password to a wallet containing around 1,700 BTC. I can't find out whether he has since been able to recover or spend any of those 1,700 BTC without the police coming knocking, though.
But yes, I agree. When thinking about wallet security you should be focusing on the most likely attack vectors, which for most people will be the opportunistic attacker or maybe a targeted attack by one or two individuals. If you think that your most likely attack vector is that of a nation state, then you've got far bigger problems to deal with.