I still believe in “Connect your Wallet”
Embedded wallets are convenient for many users, but they bring back the centralisation. We need to keep a decentralised alternative.
External wallets are the embodiment of self-custody: your keys, your identity, your control. Same as carrying a physical wallet with ID and cards, a (mobile) digital wallet can go with us across apps and in the physical world, with our credentials, assets, and decentralised identities.
Embedded wallets create fragmentation. I want to reuse my wallet(s) everywhere, and avoid scattering my identity across dozens of app-specific wallets managed by third parties.
The UX critics are fair but external wallets are not outdated. Without sacrificing the web3 principles, their UX can be improved with the latest innovations: smart accounts, session keys, batching, gas sponsorship, passkeys, etc.
(I acknowledge centralisation aspects in being a mobile app, or using passkeys, etc. Still a good trade off)