I don’t understand his point. There seems to be only two choices.

1) Most people can’t afford a UTXO and therefore can’t access bitcoin in any way.

2) Most people access bitcoin through a custodian, and hopefully they choose wisely and don’t get rugged. Some do but some don’t.

Which is better?

If there was a cheap decentralized alternative, people would choose it. But until we invent it, aren’t we left with the lessor of two evils?

The hard line we need to draw in the sand relates to protocol changes on the main chain. The sooner the protocol ossifies, the better IMHO.