Using a hardware token to authenticate to an app on an iPhone makes about as much sense as.... sorry, it makes absolutely no sense at all.
I trust the secure element on the iPhone a lot more than I trust the hardware on the Yubikey.
The days are numbered for this whole idea of a separate piece of hardware USB/NFC to do authentication. If I’m adding a “something I have” factor to my authentication flow (or even making it the only factor) it’s going to be the phone hardware itself, not an extra dongle thing I have to carry around.
FIDO’s upcoming CTAP unfortunately is going about it the wrong way, IMO. I don’t want to have to establish NFC or Bluetooth from my iPhone to my desktop to enable me to use my iPhone to authenticate on my desktop. It’s entirely unnecessary since both devices are already online. They are designing for a corner case which makes the primary case too complicated.