Fedimint is no doubt a custodial wallet. I think it is a much better custodial wallet than the traditional account with an exchange or with an app like Wallet of Satoshi because you have to trust k of n of the federation don't collude against you instead of just a single custodian.

Many people across the world use custodial lightning because it is simply easier and cheaper than non-custodial lightning wallets. Giving those people a better option is what makes me excited about it.

I think using a federation for your day to day transactions and then holding your savings in non-custodial layer 1 will be a great option for many people.