[homakov]

> Your proposal isn't trustless anymore

not black and white. I didn't say to drop collateral channels to have credit, but to use credit in addition to collateral on receiving side. Also, on ETH those credits are enforceable (as i answered below) so it is far better than a custodial balance.

> where its no longer common to get payment failures?

nothing changed, the inbound capacity flaw is fundamental. Download a wallet - you can't receive a payment - full stop. Until this is solved say goodbye to adoption. With credits on both sides the total capacity of the network skyrockets. And somebody is taking the risks anyway, either liquidity providers as in delusional LN model, or users themselves as in XLN.