It is vitally important not to conflate technologists with the tech industry and not to confuse a criticism of the industry as a criticism of ourselves personally.

That's why the "big" qualifier is important.

Work at a place that made expensive physical objects. Customers calling in because they could use the objects because they plugged the hardware key into a different machine was all the time ...

Like the hardware had to be wired to the computer running the software. An extra hardware key that needs to be plugged into the computer as well doesn't do anything!

This gives me a fun hardware idea:

Make hardware keys that have the shape of real keys, and that you have to turn to engage the USB key.

The key shape isn't security, just a hint at what needs to plug where. You sell both keys and receptacles that can be put into a metal case or an otter box

This is basically what a security key (e.g., yubikey) is? I'm actually surprised I can't get a door lock that can be opened by one, yet. Could even be NFC capable, so that you don't have to plug in anything.

Similarly, this is effectively what many car keys are, nowadays.