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That is actually slightly less secure - sometimes people do have physical access to your machines.

For example, the NSA intercepted deliveries of switches and installed their malware on them. Would be easy if there is a physical switch. Not so easy if you need signed firmware (I'm sure the NSA could still do it, but it would definitely be harder).

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If they have physical access, it's over regardless of what authentication mechanisms are employed.

I'd argue that not being able to modify software subjects you to a higher risk because you wont be able to fix security vulnerabilities yourself.

Software and hardware outlive the companies that produce them.

The NSA could just produce their own chips, and put them onto your system.

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