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Perhaps I due to my lack of knowledge, but to me hosted channels seem like a great tool. Users can fund their wallets without an on-chain fee, which could be prohibitively expensive at times. It's not a solid as on-chain security, but there are ways to make the risks very low.
One use case: there's a way to use this mechanism to connect a Lightning network node on Liquid with other channels on the main chain. If I were to guess, i imagine all these tools can be complementary to each other. Perhaps if fees go really crazy in the future, there will be more incentive for developing these things.
I like them too. It's a shame that SBW & OBW have stopped working on it. I think if they kept at it for a few more years it would have gotten more adoption, especially now we're in a high fee environment.
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