there’s a place in the market for them absolutely and they play a huge part in onboarding people.
non-custodial wallets are a really good stop-gap for those coming into this ecosystem from the fiat world.
would people in an ideal world go from one extreme to another? absolutely. is it realistic? unfortunately not so.
serious arguments are to be made if the non-custodial wallet promoted and advertised has a seriously untrustworthy history and reputation.