I'm also ok with people doing whatever they want, it's just disappointing to see all the WoS worshiping with zappening events, etc.

Do you think most on-boarded users are aware that the wallet is custodial and of the tradeoffs? Or do you think they just think it's still bitcoin just with a lot of ⚡⚡⚡?

Something that is "just temporary/for small amounts" just for convenience's sake, eventually turns into The Standard one it hits a critical mass. It happened before with email and with the web.

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It works and is easy. What do u expect?

Make something better.

Valid points on both sides. New users will be choosing custodial options on their own just because they are quick and available. So whether they find it or we point them at it, we need to educate them to know the difference.

Can you recommend one or more relatively straight-forward self-custodial options currently?

Phoenix, Blixt, breeze, OBW. None support receiving to lnurl, so if you really want that, you should either wait for bolt12 or go down the rabbit hole and set your own LN node with lnd and lnurl.

Alby + Zeus works well