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.

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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 :)