I don't know about timeframe.
In terms of security, there is always a tradeoff. Layer 1 is pretty secure in practice in large part because the functionality is relatively simple and relatively static. That has obvious limitations. The security and stability issues we've had have involved portions of the code and changes that aren't simple or static. So I would actually claim we're already building too much bespoke functionality into layer 1, but it is certainly debatable.
I'm not deep enough in the space. But if we could have a liquidity pool on layer1. It would need also a consensus to remove or change something.
Special in defi I think this would put hive in a unicorn position for stable coins. Special for larger amounts of $.
Security would be something that market really well for hive.
Edit: Thanks for the long answer. I only saw the first part of your comment.
Now I see all :D