"the main benefits are lost if a trusted third party is still required"

One major problem with lightning is it has terrible UX to use in any sovereign way. That is why over 95%+ use it custodially.

No one uses LN self-custodially. Even fewer use it privately. Downloads from major wallets:

Custodial (no privacy)

Chivo >1 Million

Wallet of Satoshi >500K

Strike >500K

Bitcoin Beach Wallet >100K

Non custodial (without node, not trustless, no privacy)

Phoenix >50K

Breez >10K

Non custodial (with node, potential privacy)

Zeus >5K