Normies manage their house keys just fine. Obviously crypto keys come with different challenges but that's a UX problem. People losing their house keys is not generally an Earth shattering event. Losing a crypto key doesn't have to be either.
A wallet is easier to lose than a bank vault, but it also holds less money for the same reason. Crypto keys can be designed the same way, with high importance keys managed by safer means like m of n schemes mixed with traditional "hard" storage in geographically distributed safe deposit boxes or whatever, while less important keys can be treated in a more relaxed fashion.
This analogy misses the entire system keeping house keys manageable. If you lose your keys, a locksmith can help you regain access cheaply and quickly because there’s an entire legal system allowing you to prove that you are the legitimate owner. The system you describe for crypto keys is not only significantly harder to use but also lacks that cushioned landing if any part of that fails. Any teenager with poor impulse control can toss a brick through the window and gain access to my house, maybe even grab the spare keys, but they couldn’t occupy it for very long or transfer it to a new owner, which is a significant risk mitigation compared to those crypto keys even before you consider how many more attackers you have to worry about online – there’s no real-world analog to some guy phishing someone on the other side of the planet to post ads or make fake reviews, secure in the knowledge that their local police don’t care.
>People losing their house keys is not generally an Earth shattering event.
yes because if you lose your house keys you don't lose your property, precisely because there is an entire legal and governmental apparatus securing it, the exact thing the crypto people first try get rid off and then reinvent (shoddily) when they inevitably discover that nobody wants to live in the jungle
Not really sure this analogy works since the usability of my house and everything in it is unrelated to having them. The house keys only make getting into my house easier.
A wallet is easier to lose than a bank vault, but it also holds less money for the same reason. Crypto keys can be designed the same way, with high importance keys managed by safer means like m of n schemes mixed with traditional "hard" storage in geographically distributed safe deposit boxes or whatever, while less important keys can be treated in a more relaxed fashion.