I dont’t know. I’m not Emurgo. But nobody holds anything hostage. You have the seed phrase. That is the way to keep a backup of software as well as hardware wallets.
If you want to be quite safe, get a hardware wallet.
If that’s not your thing, but you also don’t want secrets to be stored, you could use Adalite or ccVault. They do not store, but you give your seed phrase everytime and it’s forgotten, when you log out.
If web-hosted is not your thing (understandable, because you never know if everything is really happening in the client and nothing transmitted to the server, site could be hacked, whatever), we are slowly getting out of options, besides Daedalus.
There was a non-browser wallet proposed here:
The possibility to not store secrets was marked as quite important in the discussion, but we don’t know if and when it will be implemented.
The possibility that you get Emurgo to change their ways by complaining here are rather slim, especially given that most people seem to be just fine with things as they implemented them.