The state has a way to break anything they target at the end of the day. That's why I place no trust in centralised services owned by registered corporations, usually in the US, increasingly Switzerland too, they might not show ads but no centralised platform run by a company accountable to shareholders (public or private) will ever be decentralised in any real way.

Like that old expression goes: if the NSA is part of your threat model, you're already fucked.

But yeah when you consider the threat model of the average person they are worried more about "hackers stopping me from logging into Insta I can't get my influencer money."

As for loss, that's why you have at least one backup key.