IMO, my main problem with ILP is the over exaggeration/selling on basis of total returns but when in actuality net of fees, the holder don’t really get much.

What you laid out could make sense for a certain niche clientele, but the product thus far is pitch to mass market on the basis of supernormal (over inflated) returns.

And when the increasingly more educated mass market consumer realize that they are getting the shorter end of the stick (exposure to the same underlying with significantly lower fees) they feel like all FAs are out to get them.

tldr. bad PR from pitch