Xapo is not random it is a Company a very big Company, they are much more secure than Blockchain.info also they Bitcoins are protected/covered by a insurance. The Servers are in a big Trezor, they work with the best Security in the World, Biometric Scans, Iris scanner, Finger print, Encrypted Backups digital and paper. They had worked with the best Switzerland's Security Experts and you know that the security System of Ford Knox is from Switzerland
Assuming your security information is true (which I doubt it would be), the issue with having a massive singular web wallet holding your coins is that it presents a bigger target for hackers to come after. If I'm running an encrypted cold storage system I'm really only going to have problems if my house burns down/my offline laptop is stolen. Given that there is a minimal chance that they'll be physically stolen I'd personally prefer to have control over MY coins by having the private key. Not by having it with some random company which states that they have insurance. This is, after all, the internet where lies are more common than ants.
You are the holder of the Privat Keys, and I also have a own Encrypted Cold Wallet (using the Keys of Xapo). And yes Xapo is a very big Target for Hackers, but most of the Servers are down and/or never Connected to the Internet. For the Cold Wallet every user have a own Hard Drive what never was connected to the Internet it is in a own Safe in the High End Security Safe under the Ground (I told it before what security there is)
And if the Hard Drive crashed there are multiple copies digital and in paper (encrypted).
But this is really only for people with the biggest Bitcoin paranoia.
Do you really have only copies of your Keys in your House ?
How about to write it down and put it in the Save of a Bank
