It's just that by relying so much on centralized corporations we give them powers of a country/dictatorship:
- issue an ID
- create a policy
- ban if you break the ambiguous rules or trip some fraud algorithm
- not ban some people or orgs even if they break the rules, because they bring too much value to platform (= almost a bribe in some sense)
- and you can't really emigrate and take your belongings with you. Can you export your social graph from FB? Not sure if that's possible, at least not in a straightforward way, you need to recreate it on another platform again.
- Google and Apple become a little better with this last few years, there is data export (in a .zip, lol)
I agree with your second point. For non-technical users, taking care of their private key will be a huge issue. There are some models like multisig, or social recovery (you add a guardian or a set of trusted persons that can vouch for you).
AFAIK even FB has been trying out social recovery features.
This is a good post about social recovery wallets:
https://vitalik.ca/general/2021/01/11/recovery.html