[w1nt3rmu4e]

Delegation does not require sharing private keys. Nor does it require transferring XTZ to anywhere other than your own wallet. Ever. Period.

The only risk associated with delegation is that the baker will run off with the baking rewards instead of distributing them. Of course, the incentive is low since this can only be done once. The community is active is discussing the trustworthiness of bakers (which, to date, has been pretty much all of them).

The staking risk (risk of losing a bond) is entirely on the baker. This incentivizes them to make sure they're not double baking or otherwise running misbehaving nodes.

[aey]

My point exactly. Without delegation the only way to pool capital is to give up ownership.