That seems hard to believe unless I am misunderstanding you, because my experience is that any private key use requires auth from my Yubikey and yet I can do encryption without my yubikey plugged in at all.
edit: If by deniability you're talking about PFS, then, well, don't sign something you want to be able to deny having signed. I feel your comment might be misinterpreted to be a critique of PGP encryption when really it's a critique of PFS of PGP signatures+encryption.