One problem with hardware keys is still SaaS vendor support. There is a very narrow path for effective enforcement: require SSO, then require hardware tokens at the SSO level. But even that is difficult to truly enforce, because the IdP often has "recovery" mechanisms that grant access without a hardware key. Google is also guilty of not adding a claim to the OIDC/SAML response verifying that a hardware token was used to login, so vendors cannot be configured to decide to reject the login because it didn't use a hardware token.
If you have any vendors without SSO (like GitHub, because it's an Enterprise feature), you're lucky if they support hardware tokens (cool, GitHub does) and even luckier if their "require 2FA" option (which GitHub has, per organization) allows you to require hardware keys (which GitHub does not).
Distributing hardware keys to employees is one thing. Mandating them is quite another.