Hosted channels were created mainly for you, the node runner and uncle Jim, to offer to your not so techy friends and family a simple way to get on LN without a need to run a node.

But yeah some closed minds, jumped quickly into wrong conclusions, not even testing and running such hosted channels.

Run your own Hosted channels with Poncho and Cliche.

DarthCoin

https://fanismichalakis.fr/posts/what-are-hosted-channels/

02c142fbe9

iguano

bitcoin

TARO on lightning network 

NorthKoreanHostage

If you think TARO is a trap, wait till you hear about Hosted Channels on Lightning.

Hosted Channels are Lightning Channels which are not backed by any layer-1 transaction, but just an IOU "Trust me bro" liquidity.

Eventually companies like Google will offer Hosted Channels which cannot be closed to receive Bitcoin, instead when you close the hosted channel you will get fiat money as a bank deposit. This is how they will make it seem there is more Bitcoin than there is Bitcoin, so as to create fiat settled Bitcoin futures so as to manipulate Bitcoin prices.