I'm assuming he knows that the node runs on the device and believes there are other factors that make it functionally custodial?

I know very well what am I talking. But you guys just want to hide this from clueless users. If the user is using by default the mutinywallet.com domain/server, is not too much difference than having a Phoenix or WoS wallet. If that domain goes busted, user cannot use his Mutiny wallet. Will have to do some serious moves to recover that node into his own hands. I just want to raise awareness for clueless users that just open the app and start the node by default in app.mutinywallet.com - that is not a real "self-custody" as you present it.

You're claiming that Phoenix is not self custody either? Look up the definition and learn about what self custody is and what it means for you. You very clearly do not know what you are talking about and should seek education before you go around trying to "raise awareness".