It's a logical consequence of expecting people to authenticate fully with services in a physical context outside of a computer desk at home where passwords can

It's a logical consequence of expecting people to authenticate fully with services in a physical context outside of a computer desk at home where passwords can be safely written down. Unfortunately a hardware key is simply the modern version of this. What would be better is the issuance of limited permissions for other context in the form of less secure tokens. An example of this is the old school example of logging into your airline account and printing out your tickets to take to the airport.