Consider the regulatory risk of being a custodian/bank for randos on the Internet.

Also consider the liquidity required to run a Lightning node being used by hundreds or even thousands of people.

Alby had a limit of 1m sats per user for their custodial wallet. At just 100 users that requires a full Bitcoin of liquidity. It also requires your channel partners to have sufficient liquidity to forward payments. Every 100 users after that requires another full Bitcoin of liquidity that has to be locked up in a "hot wallet" since the device holding the keys has to be connected to the internet at all times.

I don't blame them one bit for discontinuing the custodial offering.