When it comes to mass-adoption, it's a bit of a trade off... like the article says, 'Blockchain doesn't hold your hand' and requires much more accountability and responsibility when it comes to dealing with your private keys, security etc. and come to think of it, you're right... many people just aren't prepared/capable of this... many people of course have lost funds because of misplaced private keys, scams, security compromises, etc... But it's going to require people to learn some things... otherwise things will just remain as they are, with people not being in direct control of their own finances, as well as of course those finances being slowly skimmed off through various fees/taxes etc...
And at the end of the day, though it's not that complicated, it's easy for me to say though. But while things are starting to become more 'user friendly,' you bring up some great points; How to give people options to do what they need to do but eliminate 'errors' such as this. I think the wallet would have to be 'aware' of both wallet in this case in order to prevent such a 'circular permission structure;' Amazing how much damage simple human errors can cause haha. Unfortunately for the person who's accounts got lost, I hope they didn't lose much. This sort of thing can help drive forward innovation, as people encounter all the weird 'use-cases' that can bring about unwanted results... such as that time a couple of weeks ago when the whole steem blockchain went down for a bit because of one invalid transaction. Thankfully the system was designed to stop but some other things may not be so preventable, such as users fiddling with their account permissions! 😱
And I only have a very basic understanding of this stuff, hats off to all the programmers, engineers, developers etc. this stuff is really insane, quite crazy to think of how far people have come in the past number of years! Like the technology in your average smartphone is beyond what they had for the entire freaking Appllo missions... and while we've come a long way, we've still got a long way to go in terms of living in harmony with each other as well as our planet our home... a lot of naysayers out there and it's easy to get down sometimes but still-this is the most exciting time to be alive.🙂