Don't forget that PayPal's original idea was a Palm Pilot app that replaced all those pesky hardware tokens.
Presumably PayPal were intending to do an app + hardware module - or was this essentially "LeT's MaNaGe RSA KeYs UsInG NoN MeMoRy PrOtEcTeD CoMmOdItY HaRdWaRe RuNnInG a NoN SaNdBoXeD KeRnEl"?
In retrospect, this would have been at least as good as the real securid dongles.
Also by then, the super genius software folks started getting replaced by MBAs who would rather developers be idle than work on stuff that wasn’t prioritized.
And I don't know if these things had protections against being opened anyway.
Waiting for the code to roll to get through a couple jumphosts is pretty excruciating.