It's absurd to expect any software change to somehow physically prevent people from taking your things. This "vulnerability" isn't worth talking about when evaluating software.
It is almost impossible for someone to physically steal my house. Certainly improbable. And it would be easy to recover with the help of the police.
It is by comparison easy for someone to steal crypto keys, or for them to be lost.
If we add a solution that allows us to fix the stolen or lost keys issue, then we eliminate the primary values of the block chain, decentralized trust and immutability.
So now we’re using a really complex database (potentially with POW energy use) for something that seems equally well solved by simpler tech.
So why would we want to use the block chain for this?
Right, so just use a normal database then. Shard and/or replicate it if you must. It's orders of magnitude more energy efficient, easier to mutate, maintain, and upgrade, and seems to solve the problem at least as adequately.
