Phoenix see all transactions too and I don't see people complaining about Phoenix. About greater trust than Lightning, I disagree, needs more trust yes, but still minimal and in my opinion has good tradeoffs.
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Spark has some sort of in-house UTXO management, but as far as I can see, they own the channels that ultimately provide the liquidity.
I do something similar for nostr safebox, where the ‘state’ is in the form of Cashu tokens controlled by the user and stored encrypted on relays. The mint operator ultimately owns the channels where payments are cleared.
In all cases, there is trust is the service providers; while they might claim to be ‘non-custodial’, you are still dependent upon them for ‘availability’ which is still problematic for the mints.
Spark is censorable.