That would change things.
Just look how Apple now inserts long random passwords in registration forms and immediately saved it. That's how users will use secure authentication. By helping them, not telling them to do better on their own.
The problem is that the first one is frowned upon for good reasons (but maybe not as good as they seem), while nobody supports the second one. So, yes, currently depending on hardware keys is dangerous.
Joking aside, hardware keys will absolutely get lost. Even car keys get lost around here on a fairly regular basis.
Fingerprints maybe?
This happened with the opm hack and a big one in India or Indonesia or something not too long ago I think.
In my experience there is a realization that its not about hiding your data, its about hiding from a particular type of netizen that amplifies to an extreme