So if you lost your mobile or hardware wallet on the street, you would have no problem with someone breaking in to it and emptying your wallets? How is that any different to emptying out a paper wallet you found which does not belong to you?
If I found an object on the street that isn't mine, and whose ownership cannot be proven, I'd find it morally okay to keep it. For example, cash. A mobile or hardware wallet isn't good analogy, because the owner can very well prove it's theirs. A paper wallet, if not written in a special way, is the same as cash.
I think this is not the same as hardware wallet. If it is hardware wallet, the seed phrase is still secure and safe than to be compromised
The seed phrase isn't saved in the hardware device, but the master private keys are. So, if you don't use a strong passphrase, you can have your funds confiscated without your permission.