Well spoken, that's my perception of it as well. I get what they're trying to go for but an illusion of security for those that think it's too hard to be secure is about as best as you can get with bitkey. And illusions of security is a pretty bad place to be in when shit hits the fan.

It's a cool attempt, maybe something to use like a tapsigner in a quarum, but absolutely not something I would use if it's phoning home and if everyone was using this it would be pretty bad. If it was better than being custodial then maybe but it's a weak argument that it's not custodial when you factor in the entire context of it.