Yes, ALL private keys should be encrypted and stored elsewhere. The onion/knot should be unwound from some remote place, so you have to get access to a FEW places in order to get any private keys.

Now, in MY opinion, the whole idea of servers storing OR MANIPULATING unencrypted user-submitted information is what’s wrong with our current Internet culture. This needs to stop. It has massive social and economic effects and creates honeypots for hackers.

The sooner we make end-to-end encryption a basic expectation, the sooner we change our society to have a far more private and safe environment for everyone, and correct massive power imbalances: an organization or user should have power and data and connections and ability to SPAM others because people VOLUNTARILY gave them those things, not because they happened to build proprietary software and run it on infrastructure that is needed to operate the application!!!