Assuming that millions will use this option, which in my opinion is somewhat unrealistic to expect, although Pascal and comrades obviously expect at least 100 million users to appear from somewhere who will be "intelligent" enough not only to buy their HW, but also to share their seed + KYC with companies they have never heard of.
It is amazing that after all the time BTC has existed, some people for quite evident financial reasons are starting to promote custodial services implying that the average man is incapable of being his own bank. If nothing else, if (when) the next scandal happens, at least we will be able to say that we warned people not to use such options, and that the HW itself of this manufacturer is not something they should trust.
To be honest, I'm really interested in how this Ledger Recover service goes, if Ledger sees good success by running this service, then my perception about humanity will change and if Ledger goes bankrupt, I'll remain positive and hopeful. If Ledger doesn't go bankrupt but will still remain top in this business, then I'll be more sure that average Joe is stupid and they'll believe what you want them to believe.