Real world risks of cold vs hot wallet use?

So I just made a separate post inquiring about the security of Ledger and comparison to other wallets, and it’s just got me thinking about the actual risks of Cold vs Hot wallets.

• just how secure is a physical seed phrase for most people? I imagine most people won’t spend the extra on a bolt-down fire proof safe and have a sophisticated lock system. Once cold wallets storage becomes more mainstream, the risks of people coming after these physical seeds is gonna increase.

• with a hot wallet yes there is the potential hacking issue but this is massively reduced if using a really complex password and 2FA. No physical passwords to keep anywhere.

• hot wallets are of course susceptible to government seizure, but seriously what is the likelihood of this happening to the average joe who isn’t a criminal in the western 1st world?

• my main concern about hot wallets is actually the stability of the companies hosting them. If shit really hit the fan, then I’m not convinced modern financial laws are gonna be enough to recover your BTC.

• with cold wallets, there seem to be issues with risks of data breaches/leaks from the manufacturing/host company.

• ease and quickness of use: if you are in a position where you want to take a quick opportunity to sell at a peak or something, how quickly can this be achieved on a hot vs cold wallet storage system? That said, many people see cold wallet storage as a means of very long term holding rather than a trading device, so I guess this might be considered a moot point.

• my understanding that the theft of a cold wallet generally isn’t considered an issue if it is secured with a good 8 digit passcode, as the odds of brute forcing them are tiny due to the automatic reset after 3 failed attempts.

• do people generally recommend having EITHER a cold or hot wallet, or having both?

What have you guys done with your hot and cold wallets and seed phrases to ensure maximum possible security?