I don't trust their wallet in the least. It's still of the same mindset, not your keys not your crypto. This dude I talk to sometimes was trying to say "they would never take your stuff if it's in Coinbase wallet." Where have we heard that before?
Hardware wallet is the best way for sure.
Hardware wallets just aren't practical though. I have one and it is a pain in the butt to use. Sure, it keeps my stuff safe, but if I have to jump through a million hoops to accessit, is it really worth it?
I think it's the long term storage spot. I leave a few hundred dollars of stuff on Coinbase and take the rest off so that I can play the market a little bit if I want or spend some without needing to be a pain.
I think it's certainly about ease of use. I have yet to make a big purchase with crypto so I am curious if that day comes how I will handle it. Do it out of the cold wallet or transfer it to Coinbase and do it there.
Yeah, there is still a lot of stuff that needs to get worked out before this hits the mainstream. Apps like Hive Keychain make it easy, but Hive is kind of a different beast all together.