Nsec login definitely doesn't make much sense, aside from "bunkers are high friction for now so Damus users should just paste nsec". This will improve as bunkers improve, I will share a significant step forward in this area next week.
Local nsec signup makes total sense - let users start asap but then let them export nsec to a bunker. Nostr-login widget has this option built-in, only works with nsec.app for now but will be proposed as NIP upgrade when we are confident it's good enough.
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I agree, nsec.app is the smoothest experience I've seen so far. Thinking about seeing if I can integrate it into the onboarding experience in Coracle, friction notwithstanding.