I would trust lots of professionals will my bitcoins more than I'd trust myself, especially if they had the right insurance policies in place.
The problem is that Coinbase only insured themselves against damage from coins-in-transition being accidentally lost or being stolen. That doesn't actually cover most of the cases that I'm worried about, because while a 3% loss would be annoying, it's nothing compared to the other failure modes and should be a loss that's sustainable by Coinbase independent of this insurance policy.
The problem isn't fundamentally exchanges holding the coins, but rather, exchanges holding coins so irresponsibly currently.
The problem is that Coinbase only insured themselves against damage from coins-in-transition being accidentally lost or being stolen. That doesn't actually cover most of the cases that I'm worried about, because while a 3% loss would be annoying, it's nothing compared to the other failure modes and should be a loss that's sustainable by Coinbase independent of this insurance policy.
The problem isn't fundamentally exchanges holding the coins, but rather, exchanges holding coins so irresponsibly currently.