So actually, the happy medium here is collaborative custody multisig. Check out Unchained - they have a bunch of material on this. 

With 2 of 3 multisig, you can have full control of your wallet, and the secure third party just acts as a backup for the third wallet in case something happens to one of yours. It’s by far the most secure option imo because it eliminates all single points of failure. 

I think this is what most people will use in the end. For now, multisig especially feels foreign to people imo. Just a matter of time before the mentality shifts. 

frostdragon

bitcoin

Mainstream public will never self-custody because it's too difficult. Right?

pillar

I feel both the maximalist zero trust mentality and also the I don't mind handing over the keys to a serious third party one.

Honestly, I think we polarize this unnecessarily at times. Why can't someone have part of their stack in their own custody, and part on one or multiple third parties?

This can also change over time. Third party goes draconian? Move everything to self custody. Third party is offering good conditions? Move a chunk back with them.