Absolutely! As far as I could tell, watch-only wasn't available on blockstream? (though, maybe a different story if I paired it with a Jade?) This IS a deal-breaker.

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Blockstream does have it now. But I don't think Nunchuk does.

Nunchuk (iOS) definitely has it... I use it all the time. "Recover existing wallet" reveals several options including "... using QR code" and "... using BSMS/descriptors" - each of which will generate a 'watch-only' wallet (i.e. not a 'hot' wallet).

... I'll take another look at Blockstream.

Right, as long as the private keys are not on device, it's good

Nunchuk does support watch-only. You only need to pair a hardware signer with the app to make it watch-only.

Can a watch-only wallet be set up for other hot wallets though?

Sure, you just need to export/import the wallet descriptors or BSMS file into Nunchuk (Nunchuk is built on open BIP standards).