As I understand it, the software surrounding and managing the wallets is always what’s compromised, right? So it’s really the exchanges are the only place that the money is being lost, because the protocol itself is sound.
Forgot your password? All your money is gone. Hard drive crashed and no backups? All your money is gone. Accidentally installed malware? All your money is gone. Spouse or parent with all the coins died? All the money is gone. Fat-finger a value in a transaction? Lots of your money is gone.
Yes there are “solutions” to all of these problems. All of them are Rube Goldberg contraptions themselves and have their own failure modes.