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I think some type of auto-balancing hybrid solution could work.

For example: If you go above 5000 sats, the overage gets sent to your LNURLp address. If your balance falls below 1000 sats, it gets refilled from a LNURLw you provided (examples only).

Point being: You could optimize for the simplicity/speed of custodial but still offer users control so they can maintain their risk profile.

I agree. I like to call this a buffer.

Users can manually do this now though, and many do, but it'd be nice to make it automatic - at least the withdrawal part.

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