> Don't random nodes on a route see information?
Yes
> Custodians and LSPs do as well
True
> All third parties that ideally shouldn't have information about a transaction between me and you
Agreed
*Now* can you find an LN transaction?
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Nope I can't. The way you tell me you use Lightning I'm pretty confident you have relatively strong privacy. I don't think that is true though for most Lightning users.
I can't and never claimed I could.
But Wallet of Satoshi, Strike, Chivo, Primal, large LSPs, etc (the way the vast majority are using Lightning because of it's complexity) can see a lot if not everything their users are doing.
Hackers can breach that data and governments can also potentially access that info (and they could already be doing this we don't know - gag orders and all)
Ideally I want privacy from my counterparties AND third parties, without needing to jump hoops or give up custody, otherwise it's just the same privacy as a bank.
I answered your question now answer mine. Can you show me any transactions from the Monero address on my profile? How about amounts or who received it? Can you see the fees I paid?
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