You could feel the same way about your bank or Paypal or your home if you have a mortgage, but I still don't feel it's unreasonable to both use these services and expect them to serve the purpose they were built for legally and ethically (the legal requirement ostensibly being what he ran into here).

I think most people would agree that keeping large amounts of cash is both fruitless (no interest) and irresponsible (higher probability of theft) and keeping your bitcoin in a personal wallet doesn't seem terribly different, except that theft can happen from anywhere not just your physical location. This isn't to say I don't understand the feeling, given the relatively unregulated, shady nature of the bitcoin economy. Additionally, money has value because it's useful, and Coinbase makes bitcoin much more useful to me (easier to buy and spend, which is the point of money).

So you're not wrong, but I also believe that's a criticism that ought to be tempered with reality.