They definitely deserve some kind of punishment from the community that bought their devices, but I sincerely doubt that they will go bankrupt considering that (unfortunately) most of the people who have their hardware wallets or those who are about to buy them do not understand the risks they are exposed to considering that their seed can be shared with Ledger and at least two other companies.
Agreed. People continue to use a variety of centralized exchanges despite them selling data, insider trading, seizing coins, etc. People continue to use a variety of closed source software wallets despite them having glaring security flaws and suffering from massive hacks. People continue to use other hardware wallets with poor security or poor privacy. People continue to use lending platforms and other DeFi nonsense despite millions of users losing everything in various scams and bankruptcy. They will continue to use Ledger devices despite significant risks in doing so. Best we can do is warn them not to.
I am not saying that there are no alternatives when it comes to other hardware wallets, but it seems to me that they are still a step or two behind, whether it is marketing or competitiveness when it comes to the price of the product.
I think this will change. As I said above, Ledger are currently surviving based on their previous good reputation and name recognition, but they have failed to make a single real innovation in the hardware wallet space in years. Their latest product - Stax - is an absolute joke. Newer companies are only behind in marketing because Ledger have been around for a decade.