I've been closely following nostr:nprofile1qqsrf5h4ya83jk8u6t9jgc76h6kalz3plp9vusjpm2ygqgalqhxgp9gpr3mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmqpz4mhxue69uhhyetvv9ujumt0wd68ytnsw43qzxrhwden5te0wfjkccte9eekummjwsh8xmmrd9skc34yxrm as I think their model represents what I think is the cutting edge when it comes to self-custodial Lightning on mobile.
Here's a timeline:
•Mid-2023 they started testing a feature which runs an 'embedded node' on your phone (Neutrino node on your phone with LND). Stable version was out a few months after.
•After that they set up their own LSP and started letting people purchase and lease channels from it.
•Slowly brought in taproot channels, seed recovery (aezeed), swaps (in-house and external services), LN addresses (with tradeoffs i.e. hodl invoices), point-of-sale, cashu, coin control, multiple embedded node setup, along the way.
Coming soon: Watchtower, NWC and Payjoin.
If they enable Bolt12 on the embedded nodes and also figure out how to let people use their embedded nodes for routing I don't think any other wallet can hope to come close to being as good. But Bolt12 is an implementation-level thing and I don't even know if routing is possible in this model.