I don't know what the ideal solution for UTXO management would be, I suppose improving wallet UI to explain to users they're imposing future costs on themselves and fee estimations might help but that might only cover certain users

People don't like P2P for many reasons, complexity, cost and personal responsiblity, we can only solve so many issues and leave the rest up to market incentives, people who use custodial services are just pricing their risks differently, because they have yet to be rugged