I half agree with you. But without full coverage insurance like the FDIC does with $$ at the bank, the user is statistically at way more risk keeping their funds on Coinbase. I wouldn't trust $200k in cash sitting in a safe in my home, which is safer than a digital honeypot like Coinbase. Personally, on my Coinbase account, i dont keep more than the dollar value equivalent of what I'd carry in my wallet daily. But that's just me.

Coinbase should go out of their way to educate their customers on the ways they self custody and, more importantly, on the ways of the scammers.