To me this just confirm, that Phil Naga is extremely juvenily and frankly untrustworthy. I remember seeing an old video on Youtube, think it was maybe the Joe Ingram interview about bot issues, and I was like "WTF is that a CEO????" If he was a used car salesman, then I would run not walk from his place, lets just put it like that
And as for the subject of the debate, "is it safe to have money deposited on unregulated poker sites", of course its not safe. Its common sense. You dont even know, if player funds are available, should a large percentage want to withdraw them at the same time, like what happened on Full Tilt poker. There is no government oversight, and its fundamentally an illegal business.
Even on regulated sites like PokerStars its not safe. They can go bankrupt, and they can also decide to just confiscate your funds basically at their own discretion. They can always find some part of the TOS, which in their opinion you broke, and as a player you are totally defenseless against that. You can not go to the court and file a case, as you could against any other kind of business.
Jonathan Little is not warning recreational players against having a 3 or 4 figure amount sitting on a poker site. He is talking about professional player, who play for real money like a 5 or 6 figure amount. And of course you need to protect that kind of money. The only reason, why most other streamers dont talk about this is, that they are being paid by one of the poker sites for doing advertising.