Hardware tokens were commoditised by yubikey but they really should be TPM based, until there’s critical mass it’ll be a nuanced technology and Yubikey clearly don’t have the clout.
Both Windows and Mac support host-based FIDO keys. Of course, the downside here is that you...can't move them to a new computer. So they're sort of hard to use on their own, hence people still turn to portable (but less secure) solutions like TOTP and SMS.
*I didn’t say it’d be great user experience though.
In principle it's similar to the password manager problem, which is a bit ironic: if everyone used password managers, most of the same security issues would be resolved. (There are a few cases where a FIDO key is better than a password manager, but not many!)
It's already hard to trust OS and browser. Therefore I'd prefer a physical interaction on a device where the behavior cannot be altered.
TPM(ISO/IEC 11889) started 2009
So your timing is off, but otherwise yes, TPM effectively can do what a yubikey can do, but it can also do more than that, especially in the TPM2 version.
Most modern phones have SE(Secure Element) or virtualized secure zone(ARM Trustzone) which can act as de-facto key.
Google already uses it to great success(most people are clueless to that though)