You know me k00b, I prefer no rehypothecation risk. Lightning channels generally ensure this. I'm using blixt and I have a channel with SN, but hardly anything goes through it lol. I do think I'm within the pragmatic spectrum though. rehypothecation risk is mostly risky with applications in which payment is expected to be received and sent out of.

Although nostr's zap model works fine in my opinion and I would like to automatically send to my lightning wallet when I receive something in SN (with no fees thanks to the channel I have directly with SN), I understand that SN should have no incentive to print sats out of thin air and that it shouldn't be doing any loans or anything. Any temptation to earn yeild off of custodied funds should be energy directed towards opening channels and charging routing fees if anything.

If SN came out with its own LSP wallet like phoenix or breez, it would be neat, although ultimately, probably unnecessary lol. I suppose my ideal would be a more general wallet that easily allows the user to point to any Lightning Service Provider with a good user interface for doing so, with next cloud integration to backup those lightning channel states to the users computer (watch tower) and maybe even the CLN method of doing things, pushing those channel states to the various LSPs to be the watch tower for the user.