In my experience remote signing with nostr keys works well enough and doesn't seem to be the bottle neck since a signature is only needed when the user is taking an action so any delay can be handled with a loading screen.
Remote decryption is more of the issue since its slower than signing and usually requires more than a single call (user opens DM conversation). NIP-59 just makes this worse though by 2x the number of calls
I don't know what a good solution is but I don't think its key delegation or derivation since that requires either a messy permission language (NIP-26) or a extra metadata layer or changes to the relays 😞
Gift wrap works like it works because it provides certain guarantees that can't easily otherwise be provided. But yes it has this cost.
A agree that NIP-26 or similar key delegation is not easy and maybe not even a good idea in nostr. But it is a good idea in general if we started over.
I don't know, I tend to think the main reason nostr took off so quickly was because it had extremely simple cryptography compared to other systems and that it worked in a web browser
But that is probably just my bias since I wouldn't have started working on nostr if it weren't for that :)
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