What’s the difference between trusting a bank and trusting a company like Ledger?

One of the main goals, if not the most important, in crypto is to remove the need for trust. The aim is to enable peer-to-peer transactions without relying on a third party. However, based on the recent scandal with Ledger’s recovery system, it got me thinking. How does trusting a bank differ from trusting a company like Ledger?

When Ledger announced their recovery system, a lot of people were pretty upset. They had put their trust in Ledger when deciding to buy the device, believing their previous claims that such a system wasn't possible. Ledger is not open source, so at the end of the day you are trusting that what they claim is true.

I don’t want this post to be a specific attack to Ledger, I am aware that other companies selling similar devices might face the same problem. But I am genuinely curious as to why would somebody get into crypto so they trust a company instead of a bank.

I know that there are other methods which are safer than owning a hardware wallet. Although, storing your crypto in a hardware wallet is the advice that I hear the most in the crypto space. What are your thoughts? Am I missing something?