Wikipedia's definition: "the reliance on the secrecy of the design or implementation as the main method of providing security for a system or component of a system."
Youbico isn't saying that the security of the device is increased by keeping the source code secret.
They say they are increasing the security by things like this: disabling user-loading of new firmware (which could be a bad actor loading bad firmware), using hardware with built-in side-channel countermeasures, and disabling JTAG ports (which could be used for key extraction).
This isn't obscurity. These are some good engineering arguments. Engineering is always full of trade-offs.