Really? Safe Mobile (formerly Gnosis Safe) no longer generates keys on-device, only imports seed phrases

Hi all.

I am setting up a safe multisig with multiple phones belonging to different people as signers.
With the former Safe Wallet app it was relatively easy to do, but I see now that since transitioning to the Safe GmbH entity, Safe Wallet is being replaced by the new Safe Mobile app which doesn't allow generating keys anymore. It is only possible to import existing ones by manually typing a seed phrase.

I have been, to put it mildly, extremely surprised that securely generating a key on device is not possible anymore. Is one really supposed to generate new keys elsewhere, then import them into the device through their seed phrase? Doesn't this go against all technical and UX security principles?

Among all the wallet providers, Safe is the last one I would expect something like this from given their reputation. My immediate reaction was: "I must have installed a fake app which is phishing me for my seed phrases", but I got confirmation from their support team that it's actually by design!

I think this is a huge step backwards and I am genuinely out of options now for secure and simple multisig setups. Any advice?