But then you're trusting the key generation software/hardware of your PC and some people feel this is less secure unless you're able to take drastic measures to

But then you're trusting the key generation software/hardware of your PC and some people feel this is less secure unless you're able to take drastic measures to secure the PC doing the key generation. Some people prefer the risk of losing their keys should their card/dongle get damaged or stolen so that they can have the card/dongle generate the keys itself using a verified mechanism (although in this case, clearly that verified mechanism wasn't working correctly).