Large exchanges handle this very simply: If they have the keys, it goes to the inheritor(s) once they get a court order. If they do not, it goes nowhere
There are plenty of legends of old wallets "waking up" due to the person getting out of prison, as it seems the only plausible way someone can sit on 30 BTC for 10-15 years, through all the news and price movements, without touching it once. One would only expect to hear about the successful seizures law enforcement makes.
Pretty much everyone. There's a reason people lost money with ftx, Mt gox and other scams.
Managing your private keys is cumbersome, error prone, requires some computer literacy, the list goes on.
Tbh I have been kind of impressed by how fast L2 businesses brought back centralisation in every possible way. I guess it's more efficient for them.
In the same way, the internet was supposed to be decentralised, everyone being in charge of their own servers. But in practice nobody has the time to set up their own MX servers.
