I agree about decentralization as anti-feature, but this is a poor analogy.
It's equivalent to saying, people do not want all their money to disappear because they chose to carry all their life savings in a briefcase on the subway and then they lost the briefcase. If you did that, no bank is going to reimburse you. The way to avoid this problem, is to keep your fiat savings in the bank (which means, as some number in some database they keep), instead of in physical bills on your person. It has nothing to do with fiat or TradFi being inherently better than crypto.
Likewise, the way to avoid this problem for crypto, is to not carry your private keys with you all the time (or at least, to only carry them on devices you can afford to lose, such as a hardware wallet that an attacker needs time to penetrate, giving you time to go home and restore/move your funds). Obviously self-custody is still hard and still a high barrier to entry, but from a financial risk perspective, you should only "carry" as much crypto on you as you would be willing to carry as cash in your wallet (which of course you can always lose, and losing it doesn't validate or invalidate the banking industry).
In an ideal world, every device would be secure enough that the user could afford to lose it.
P.S. I'm using a pixel phone running CalyxOS It has a locked bootloader so I am reasonably confident an attacker could not steal my keys. I wish I could say the same about my laptop.
It's equivalent to saying, people do not want all their money to disappear because they chose to carry all their life savings in a briefcase on the subway and then they lost the briefcase. If you did that, no bank is going to reimburse you. The way to avoid this problem, is to keep your fiat savings in the bank (which means, as some number in some database they keep), instead of in physical bills on your person. It has nothing to do with fiat or TradFi being inherently better than crypto.
Likewise, the way to avoid this problem for crypto, is to not carry your private keys with you all the time (or at least, to only carry them on devices you can afford to lose, such as a hardware wallet that an attacker needs time to penetrate, giving you time to go home and restore/move your funds). Obviously self-custody is still hard and still a high barrier to entry, but from a financial risk perspective, you should only "carry" as much crypto on you as you would be willing to carry as cash in your wallet (which of course you can always lose, and losing it doesn't validate or invalidate the banking industry).