BTC will now be backed by the federal government without them ever spending a dime on BTC.
BTC is not backed by any government and that cannot happen, BTC is backed by its features, like decentralization, scarcity, etc. BTC is not centralized, so it cannot be backed by a centralized government.
Many people do not want the burden of self custody and ultimately I think this is one of the best, budget neutral ways that the government can send BTC to the moon
Self custody is not a burden, that is how BTC was designed to be used, with the owner being their own bank. If anyone sees self custody as a burden, i would not be wrong to say that they do not really understand what BTC is.