Thats an interesting take. Yea i think the convenience of this and the catastrophe of missing the private key is quite alarming.

If your private key is leaked you are screwed, whereas with a leaked password you still have some leverage since there is a place for accountability.

Nostr has something called Bunker i havent gone in depth but its solves most of these challenges.

And your concern is valid, a real opportunity would be to look at how to make this Simple for everyday users who don’t mind having their keys stored safely

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Bunker as I understand it doesn't prevent a user from losing their private key. In fact, you have to give it up to the application you're using. Limiting exposure to Amber (what I use) IS better than giving every app my nsec, but I still gave it to Amber and still have to secure it myself ultimately. A Bitcoin cold storage type system is my ideal solution. Store the key totally offline and only ever give it to a signer that is offline. And also have sub keys maybe that can be expired.

Agreed i think this is a tradeoff for sure