I don't understand why OP respects Coinbase so much, but this is the sickest user agreement I have ever read. To be honest, I didn't read their user agreement before today. But I wanted to dig into the reason, and I was shocked.
Pretty much every centralized exchange has words to the same effect buried somewhere in their legal documents. The fact is that as soon as you deposit your coins to any centralized exchange, they do not belong to you and the exchange can do anything they like with them, including simply keeping them for themselves. It happens all the time, but everyone thinks "Well, it won't happen to
me", right up until it does and they lose all their money.
I believe over 95% of Coinbase users don't know about this. Almost no one reads the user agreement when they sign up. If anyone does, I don't think they will end up signing up on Coinbase after they find what coinbase can do. Almost nobody knows what's hiding in their user agreement page.
The exact same thing happened with the likes of Celsius, Voyager, and BlockFi. Here's a post I made several years ago warning people about these platforms:
https://bitcointalk.org/index.php?topic=5315224.msg56289293#msg56289293. In it, I point out that their terms quite clearly state that they will lend out, gamble and sell your coins, all while keeping zero collateral, and you have absolutely zero rights if it all goes to shit. Fast forward several years and these platforms collapse because of this exact reason, and all their users are shocked that they were engaging in the exact behavior they said they were engaging in, because none of the users had bothered to read the terms.