thats my point, as self hosted lightning is still a pain in the ass, arent normal users just using custodial wallets and we have gained almost nothing compared to the current banking system?

for custodial wallets, yes. it is the point of self-custody. 

TNStacker

thats one point, thank you.  but couldnt that also be done in the future by wallet providers as we have no proof of funds?

Darthcoin_Cash

lightning

Custodial LN> Whats the advantage to bank accounts?

Simple answer, the reserve system. Banks lend your funds out as part of the business model. 