Passwords aren't as critical in my opinion, because I can always change them. Sure, it would suck if someone broke into my hosting account or my bank account, but I could probably fix it somehow. I was more thinking about secrets that I don't want people to find out, because there is no way to make people forget something they learned about me that I wanted to hide.
I’m joking around but I did get your point. I just think secrets cannot be categorised simply in “stuff I don’t want anyone ever to learn about” (why would someone use signal for that though) and “stuff I don’t care if anyone learns about”. 99% of the information I send over signal is actually neither, it’s in-between. I don’t want the whole world to see pictures and names of my family. I do want other members of my family to have them. Hence I use Signal for this, because I trust them most (or I distrust them least, depending on the point of view).
It’s all about trade-offs, as you said.
End it end encryption make me worry less about this. I’m not a very trustful person simply put.
But I agree that everyone need to evaluate their convenience vs. risk ratio individually. I use VPNs, I wouldn’t dare to ask my family to do the same, it’s highly inconvenient.