Imagine signing up to a site or service,all you need to do is allow it to generate a unique public/private key pair on your personal hsm. You would optionally associate a username with the public key,but that's it!
No need to enter name,address,phone,email,etc.., Unless required for the service. You won't even need a password(!!)
Lost the personal hsm? No worries,you wrote down a recovery key on paper and stored it next to your social security card and passport.
Here is my thing, simpler security is better security. I use a yubi everyday and it's nice but I also use TOTP and SMS every day. If I am using a hardware security device,why do I need any other form of authentication?
Why can't that same device be used for TLS client certificate storage for every site I visit,storing SSH private keys,trusted root CA store I can use with any device, message(email,signal,telegram,etc...) Encryption,message non-repudiation(think a twitter post or even this comment being signed by my hsm so I can't say 'the hackers did it'). You can use it for banking,voting,signing important documents online,etc...
You can already see how much work goes into adopting something like a yubikey. Why not make it a general purpose hsm that solves all these security problems.
You know what I like about this the most? Minimal user education required,just plug it in,click yes on the app's prompt and press the button on the hsm. Not only that,you can't phish or some other way social engineer the user to give up the private key. Users can keep it on their keychain or building access badge that would give physical attackers similar level of access(they can unlock your house keys and steal pii or get in the building with your badge and steal your laptop).
A user friendly usbarmory for the lay-person!