~snip~
The perplexing thing to me is the number of people who seemingly still support and use Ledger devices in the face of the Recover debacle. There are tons of redditors who keep arguing that it's no big deal. Some of those could be shills, but I'm guessing a lot of them aren't; they're just incredibly naive or just don't care about their privacy. It boggles my mind, but hopefully Ledger will somehow self destruct as a company OR people will wake up and see the truth behind their BS. If I had to guess, it'll be the former happening first.
I think you are not wrong, the vast majority of people who own Ledger devices are not at all aware of the risks arising from the recovery option - in fact, for some it is a positive feature because they never liked the idea of being their own bank, or in other words they did not want to take responsibility for such a thing.
If we were to get into the head of the average user who owns LHW, then he probably thinks like
"it's good that there is a recovery option, because if I lose my backup, I can always restore it this way". Of course there is some truth to this, but it is not something that should be part of a hardware wallet because it undoubtedly defeats the very purpose of the device.
As for the company and their survival on the market, I think that they can only be destroyed by an event that would result from someone succeeding in hacking their recovery service and people starting to be hacked in that way. Until that happens, they as a company can very skillfully balance between
"nothing bad happened - nothing bad will happen".