They are losing customers. Closed source, and their Ledger Recovery Service broke basics of a good wallet.
I heard they plan to make more of their code open-source in the future. I guess that's inevitable unless they want to go out of business after their last recovery fiasco. Kinda weird that it needs to go this far before they even consider asking themselves whether they are doing a smart thing or not.
You are speaking fact here but do you know that the Electrum wallet stays online most times because you are running on your smartphone with a 24/7 internet connection?
I believe he refers to using Electrum with a cold storage setup., not a phone/a hot wallet. You can also force yourself to use a phone and never turn on the internet I guess, but why not use other devices at that point? Anyone who uses their phone to manage their crypto should realize the risk in the first place. CMIIW.