Thanks a lot for the detailed reply mate!
Yeah I'm warming to the idea now of CeFi and feel it will probably be the way forward for how familiar "banking" will operate. You deposit your money, you earn interest. That's all it needs for most people. These companies need to meet financial regulations and at least here in the UK, KYC means that events can be taxable so there's money coming in from capital gains i.e. regulation.
DeFi seems to be the wild west and a dark art for me. I've not really dived in to it and as you described, how many scams have already come about from the craze? It's mad!
I'm still so new to the CeFi, DeFi thing and trying to wrap my head around it but I think we're on the same wavelength. It comes down to how much you trust yourself with your own keys really - a lot of non-crypto folks will rather have someone look after their tokens in a CeFi manner vs needing seed phrases and the rest of it. I've been around for 3 years now in the space and there's still a lot to learn but I'm also technically minded, most others outside crypto likely aren't.
Your project sounds like it will be a fun venture in one way or another so I wish you well with it!