The CEO of Ledger had some head scratching logic on the What Bitcoin Did podcast. In one string of logic he made the case that wallets on phones are 'as good as gone' in terms of security...as in extremely unsafe...all while a few minutes before he dismissed completely the threat to everyday citizens of censorship or seizure of assets by the State. He seems to be picking and choosing what is a threat and what isnt for the sake of his business model...always falling back on 'well then this isnt the product for you'. At the end of the day all of these hardware products emanate from the need to secure digital property in a way that its never been possible to secure property. I have a ledger nano S (which apparently is unaffected by this shard custody firmware update), but I feel like bitcoin's ethos is state resistance and will be looking for a new hardware wallet. Ledger is taking a 'state compliance possible' path which seems completely against everything bitcoin.
Discussion
I found that moment pretty strange too, and was surprised NVK didn't rebuff it better. As far as I know there haven't been any software wallet thefts - doesn't make them 100% safe, but that's the logic Ledger CEO was using.
How could Blue Wallet etc. be as good as gone? Maybe if an attacker had your phone, and your unlock code. Fair enough. But many software wallets also enable biometric unlocking, so then need a wrench attack ... and how is that different from a typical Ledger wallet wrench attack?