Sure, Binance could run off with your money tomorrow if they wanted you, but if you keep most of your money in your actual Bitcoin wallet and only deposit what you need to, your money is 100% safe.
Unfortunately wallets have their cons too, and there are a lot of people who have lost their passwords or thumbdrives and thus access to their crypto.
No silver bullet.
You could say that’s actually a better outcome than losing your private key.
But yeah, the moment you have key recovery, even if it's decentralised and requires multiple parties, you aren't 100% in charge anymore.
But, it's probably a good alternative to being 0% in charge with custodial wallets.