This doesn't kill self-custody of bitcoin

Since the Coldcard failure I have seen some people arguing self-custody is "dead" and that all bitcoin holdings should be through a custodian.

I think this is completely wrong. A failed hardware wallet does not prove that self-custody is the mistake.

The Coldcard crisis shows that controlling your keys doesn't automatically make the solution safe.

A hardware wallet is still a product, and its entropy generation, firmware, components and recovery process can fail.

Moving everything into an ETF avoids some personal key-management risks, but replaces them with institutional, legal and access risks.

The real mistake in self-custody imo is treating any single device, seed or custodian as incapable of failure. For meaningful holdings, custody should be designed so that one failure cannot evaporate the entire position.

Do you think this is a fair assessment, or am I missing something?