Interesting, i have used Phoenix, Muun and Breez as well as a couple of custodial wallets.
My experience with the self hosted ones is that it is a pain in the ass still to manage your channels and also the transaction fees were nowhere near a few sats. More aroud 0.3 / 0.5% of the transaction value. Often 30 to 50 cents, a couple times even a few dollars.
Only between custodial wallets i saw really low fees. Also not all the time.
In many cases the fees were higher than in the banking / card networks, mainly when you transact with other self hosted wallets or non mainstream LN nodes.
To me we are also not early anymore, it is 7 years since the split in 2017 and we still do not have a solution which allows easy self custodial usage for non techies. All i see is people using custodial wallets, which is just another type of bank to me.
LSPs are also kind of a trusted third party, at least you depend on them for a smoother experience. They will have to KYC you and adhere to AML laws over time and some already are.
Which upcoming developments in lightning are promising to you?