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HTLCs aren't split in either the hold invoice or bolt12 case. Both are just forwards.
With wrapped invoices, the payer is getting the invoice from the party doing the wrapping.
Fair point. This isn't true in the bolt12 case though. For our use, and geyser's, and robosats', this is okay because Alice trusts Bob which is why she requests to pay Carol through them. If we didn't wrap the invoice, Alice would have to trust we are giving her an invoice that goes to Carol anyway.
Given that wrapped invoices have 0 technical justification.
Atomicity is justification enough for me.
Alice trusts Bob
So why doesn't Bob just run a prism?
Alice would have to trust we are giving her an invoice that goes to Carol anyway
That's the actual problem that needs solving, Nostr offers incoming for this purpose.
Atomicity is justification enough for me
Is it really though? What value do you put on it and have you calculated the costs? If so, at what cost is atomicity justified? If 50% of payments fail, is that acceptable when the alternative is 90% success?
Absorbing that cost comes down to a rationale, a fear based rationale that that leads to high time preference decisions to scam the regulator that inevitably backfire (unless you're Tether?)