I fully understand your thoughts, as someone who never got into "DeFi" in the first place for those sorts of reasons.

I would also like to warn against complacency around "wrapped bitcoins". It sounds very algorithmic and nice, and a way to have your cake and it it, too – a promise that you can have bitcoin and use the popular DeFi protocols at the same time. But "wrapped bitcoins" are just tokens issued against real bitcoins that a central party promises they have in custody. WBTC is backed by coins BitGo say they have in their custody, soBTC was backed by bitcoins FTX lied about having in their custody, but didn't.

So "wrapped bitcoins" are no different than having bitcoins on an exchange – you have counterparty risk. And since you don't know what your counterparty's counterparty risk is, you can't quantify your own risk.