Cos it’s still custodial, just much less bad type of custodial. You’re not transacting sats, but sats IOUs.
Conceptually just like fiat started out, which worked ok until the rugpulls.
That said, the people working on bitcoin ecash are smart, realistic, know its weaknesses and are working to mitigate them.
I think Calle had an idea for provable reserves, which would eliminate the creeping fractional reserve risk.