Yubikeys are an even worse solution, in my opinion. They dramatically increase the amount of hassle and maintenance required because you have to have multiples of them to ensure that you won't get locked out.

Also, it's not always convenient or possible to plug something into a machine you're using.

> to use a passkey, you need a place to store the passkey.

Yes, and any place that requires me to use particular piece of software, machine, or device is a real friction point for me.