Why is the ecosystem adopting embedded wallets rather than improving support for smart wallets?

They feel akin to partial custody and perpetuate the UX of active crypto users forgetting where all their money is stored.

musician: gigameshmusic.com | dev: github.com/gigamesh

I guess the main answer is smart wallets still require managing private keys for signing smart wallet transactions?

Smart wallet UX still requires you to leave the app. That’s not good UX on mobile.

Because connecting wallets across different apps on mobile is a bad UX

It's easier to onboard people if they don't need to securely write down seed phrases and worry about safe storage of their assets. Of course very few people actually do that, leading to people getting hacked and rage quitting the industry after losing everything.