Biometric protection best protects users from themselves . They do not need to store passwords. It is enough not to lose your fingers or eyes for identification .
And this is good. How many wallets are lost for the simple reason that users have lost their wallets. But services cannot help them with password recovery.
All information are stored decentralise. Hope it will be safety for the user. At least the wallet with biometric protection better than the wallet without biometric protection.
Decentralized mean that all information and all data are stored not in one central place but in diffent placas. It is more safe becase hackers can hack one server but to hack many places it is much more hard.
If hackers hack into one server, they will receive only a part of the data of a certain user. For example, to get complete data about one person, you need to crack 10 servers (I came up with the number 10, maybe more or less servers)
If everything happens as you wrote it means we can not worry about the loss of personal data and money. One server is very difficult to hack and several is almost impossible.
It is more difficalt to hack several servers that a one server especially whey you do not know exactly what servers to hack. It is necessary to hack a wright servers.