Some people are just ignorant and they won’t listen, he is trying something risky that he will regret later, is that your neighbour a beginner or he knows much about bitcoin, because with the way he behaves, it looks like he know much about bitcoin and try to over do what he don’t know despite the advise you gave, and is like he did not value his assets that is why he want to take the risk, no one in his right mind will try that kind of thing because his seed phrase is not safe, this is why i don’t feel bad for some people when they lost their bitcoin or when they were scammed, because they are the ones that do some things that will make them lose their assets.
In the crypto world it can sometimes seem harsh if you don’t have deep knowledge and ignore all the risks. In many cases losing Bitcoin actually happens because the owners themselves are careless about basic security. Especially when they often ignore the Seed phrase even though it’s the main key storing it carelessly actually shows their own attitude of not valuing the assets they have.
This happens like in the case you mentioned, where someone was already advised but still acted recklessly. Even though they knew the risks they chose to ignore them. So, naturally the feeling of sympathy often decreases. In the crypto world, full responsibility lies in the hands of the owner, so when they deliberately take risks and end up losing it’s more of their own mistake rather than just bad luck.