I disagree. A physical switch on the key itself which opened a circuit to the decryption key would mean the key would need to physically be in the possession of the driver.
To think of it another way: before keyless entry was a thing - how many people were thinking 'damn I wish I didn't have to get these annoying keys out of my pocket?'
To think of it yet another way: How many people buy the upgraded trim on their car mainly for the keyless entry?
(Not having a go - genuinely curious)
I used to have a car without this feature and it was sort of annoying for 5 seconds each time I have to unlock the car. I do get annoyed when I get a rental without this feature too.
Additionally, this also helps when I am carrying bags or other large items with two hands. I can simply make a kicking motion at the bottom bumper of my car and the trunk will open automatically instead of me having to put the bags down and fish for my keys.
I agree that it is minor and not a real deal-breaker, but it is a nice to have.