hardware wallets should emphasize self custody and do everything the right way following good principles, but pure self custody could be made easier.

I think social recovery with no paper backup might be a system worth exploring.

good to eliminate SPOF (single points of failure).

Both options should be available but pure self-custody should be the ideal standard. No 2 users are identical in their needs. Most bip-39 seed based hardware wallets are inaccessible to screen reader users for example.

The best ones will deliver both.

Continue to build for power users and new users alike. They’ll be more than enough market share for all as adoption grows.

I think it's ok for someone that doesn't know much about Bitcoin. They can always upgrade when they become more knowledgeable.