I use both. They have their place. I agree that self-sovereignty is the ideal, but not always necessary, depending on the use-case and the balance you keep.
Should I be bothered that I have a few thousand sats in my custodial Sovereign Craft wallet, when the vast majority of my Bitcoin is in cold storage, and I have a bit of day-to-day sats on my own lightning node? I don't think so. I am 99% self-custody and I think that is acceptable.