This is an entirely normal position.

Some people just want less monetary debasement not to be their own bank.

People want custodial services because it’s difficult to know whether your method of storing/remembering your private keys is secure enough.

Spoke to someone once that said they had > 10 btc on a single Ledger Nano. This guy also has his seed phrase on a written note in his own house which I found BY ACCIDENT!