>"It's also tremendously more efficient to tap your finger on the plugged in USB than it is to wait for a code to be sent to your phone or go find it on an app to type in."

But with regular TOTP and a software device on a smart phone I can print out backup codes in case you lose your phone. This allows one to log in and reset their 2FA token. What happens if you lose your Yubikey or similar? I guess this doesn't matter as much in an enterprise setting where there is a dedicated IT department but for for individual use outside of the enterprise doesn't TOTP and a software device have a better story in case of loss of the 2FA device?