Some features and tradeoffs made by modern Bitcoin and Lightning wallets are compared.
Inherent limitations of light clients, and limitations of lightning itself are discussed.
Custodial wallets have innate advantages to UX; still we want to compete with them as otherwise there would be almost no point to Bitcoin. Usability and decentralisation are at odds. However, single points of failure and trust in central servers is to be avoided, for reliability, censorship-resistance, security, and privacy concerns.
Custodianship is a spectrum... but what if a project does not want to be custodial at all?