Are seed phrases a major bottle neck for mass adoption?

I have a lot of concerns about seed phrases and mass adoption:

1. If the average person loses their seed phrase, their money is just gone? This will be devastating if someone’s entire net worth is in crypto.

2. How will large corporations manage seed phrases? Who will have access to the seed phrases? Where will the seed phrases be stored?

3. If someone steals your seed phrase your money is gone?

I understand there are solutions like keeping your coins on a CEX, using multi sig wallets, or BEING RESPONSIBLE. But these solutions seem to involve centralization, trust, or are just unrealistic for the average Joe Schmo.

Are there any good solutions for my concerns that do nit sacrifice decentralization or add the need for trust?