I would not call it a distraction. But maybe it could be one tool of many to build a product of later.
There need to be development like this.
We must not forget that there is a huge difference between the normies world and the Bitcoiners world.
If we build for Bitcoiner, it can be nerdy and kind of reckless because of testing etc.
But if you want to build for normies world you have to make the app as easy to use as possible especially when dealing with money. There must be double or triple nets that the dumbest user cannot get rekt by the app, other than doing dumb transactions, which are users faults.
But if he changes his phone and did not write his seed phrase down, there must be a way that he can get his wallet back. Without a big workaround. He then does not want to hear that he should have wrote down his seed phrase.
This is what the user expects from every banking app. He gets a new phone, logs in and there is his money. At least we have to achieve this user experience.
Otherwise there is no reason to switch to Bitcoin for normies.
I think we even would damage bitcoins reputation for the normies when one after another loses his funds because of not writing down the seed phrase or a mint rug pulls or what ever.