Of course we need to trust people to some degree. There's an old Jewish saying - put your trust in god, but your money in the bank. I think its like that. I'm all for trusting people - but I still like how my web browser sandboxes every website I visit. That is a good idea.
We (obviously) put too much trust in little libraries like xz. I don't see a world in which people start using fewer dependencies in their projects. So given that, I think anything which makes 3rd party dependencies safer than they are now is a good thing. Hence the proposal.
The downside is it adds more complexity. Is that complexity worth it? Hard to say. Thats still worth talking about.