That incident doesn't make every other hardware wallet unreliable. Coldcard got compromised due to their weak seed generation, but the risk could've been mitigated by using a strong passphrase.
I know all this, i am talking about new users in the network and those whom i recommend self-custody over custodial storage to, they are not wrong to think in that way. As for a strong passphrase, it is a great extra layer of security, but you wouldn't always need it not to lose your funds, your seed phrase is enough, as long as you don't expose it. It would be unfair to turn to the Coldcard victims and ask them why they didn't extend their seed words with a passphrase.
It serves as a reminder for users to generate their own seed phrase, and not to blindly trust any single device.
It is not the most newbie-friendly thing to do, and rather than recommend this to newbies, it would be better for them to allow their wallet generate the seed phrase for them, so they don't screw themselves up.