How Keys are different than an OTP app like Authy?
Every device (except accessories like AppleTV, HomePod, etc.) you log into iCloud with effectively has Super Admin control over your entire iCloud account. Any logged-in device can remove, modify, or change (almost) anything without a password… including the account password (hence the almost). Once authorized, that access is controlled by biometrics with a backup PIN. As long as you maintain control of a single device you have access to everything.
Yubikeys work the same way. Doubly so when dealing with resident credentials and passkeys. Key as as many as possible—just make sure the PIN is not obvious. If you hold the key and know the PIN, you can do anything. No other information is needed.
The big difference between this and OTP is two fold: 1) much more resistant against phishing; and 2) the underlying key is less likely (or impossible-ish) to be exposed. Phishing a 2FA OTP is actually not hard with a good fake UI. It just requires someone to act quickly on the other end or a good script that can quickly change the password/security settings once a password and OTP are successfully phished.
If Google decides you have Done A Bad, suddenly you can't login to anything, anywhere.
An offline backup I can control, I can put in a safe for my relatives in case I die unexpectedly. Or I am robbed. Or any number of foreseeable circumstances where the physical manifestation of my secret is lost.
But for me, the online-backup provides enough redundancy. In order to be locked out, I'd have to loose all my devices and, at the same time, be banned by my cloud provider.
[1] at least that's what the Safari-UI suggests.