Yield is not a fiat concept. Risk/reward is a fundamental axiom. If there is no reward (yield), then there is little incentive to take risk.

All LN liquidity is at risk in hot wallets. Because of low yield, we now have hub-and-spoke and increasing centralization to achieve capital efficiency. Node/channel counts are decreasing and average channel size is increasing. It is not debatable; it is a fact: https://www.fidelitydigitalassets.com/research-and-insights/lightning-network-expanding-bitcoin-use-cases

Not a good look. Unless you're a centralized business seeking economies of scale and crowding others out - then it's going just great.