You're absolutely right on every count! I once tried ledger Nano S. What a buggy piece of shit! I will never touch that thing again. Hardware wallets on specialized hardware are BS because of the trust factor and because of bad quality of the software as well as because they're easily identifiable as bags full of money. Even if a thief could not crack them, getting one stolen would be a major nuisance.
Storing your funds on sufficiently many centralized exchanges is better and an airgapped Raspberry Pi is probably the best. Your encrypted seed phrases can be stored separately to make sure losing or breaking your Pi does not wipe out your savings.