In the end this thread is just FUD around Ledger to promote their own alternative. It's marketing, not reality.

If my parents were to use a Ledger and had fear to lose their seed, I could still recommend this kind of recovery mechanism.

In my case I use social acquaintances because I am against KYC but there are people who are not against KYC and who are not comfortable with recent technology. For these people this is the right service.