All the problems that you are indicating are possible problems with the OS, not with Electrum.
These problems can be solved if you switch to using Tails, for example. That already comes with the electrum installed. The seed you would have to put on a paper. But in a hardware Wallet, you also have to save it on paper.
Hardware wallet is very good. But they are also extremely expensive depending on where you live. They draw much more attention if you want to travel with it.
If the goal is to popularize the use, always recommend using a hardware wallet makes it harder for those who are starting now to be enchanted by the BTC. The initial cost gets very expensive. Just to put it in perspective, in Brazil buy a Ledger in a Big Store would cost more them half of a minimum wage.
But even if your OS is compromised, hardware wallets can work safe - private keys are inside of the device., Also you miss the point, Electrum seed is generated on PC, hardware wallet seed have no connection with you PC. However it is true seed need to be stored in a safe way, but this is just the question of security. I know for problem some users have regarding cost of hardware wallets, but it is less then 100$ for Ledger Nano S, security has no price if you hold significant amount of coins.
So you have your opinion about hardware wallets, is it based on your personal experience or you know an example when some user lost his coins in a way that hardware wallet is hacked? How much is known to me something like that is did not happen so far, so why hardware wallets by you "provide the users a false sense of security"?
The occasional debates and threads about hardware wallets that has been appearing here in DT&D board, so far,are enough for me to say that hardware wallets are no safer than alternative clients.
And your examples of bad things that could happen are mostly the user's fault, not the client's.
In addition, that's for sale, a product and involves money, a business.
Its sales will always depend on how it was advertised, and apparently, we all know how advertisement works.
That's my opinion, it's up to them to consider it.
I respect your opinion, and certainly do not want to convince you that hardware wallets are ultimate solution for our coins safety. But hardware wallets prevent even users faults and possible threats which may appear on the user's computer, for me just enough to pay some money for extra security.
