IMHO better to root if you can, since then you do get full control as the rightful owner.
In some countries (Scandinavia...) not having the banking app is inconvenient, as it's used for authentication with many other services.
I would find it annoying if I had to carry the keyfob. I have it as a backup.
https://www.mitid.dk/en-gb/get-started-with-mitid/mitid-auth...
By using an app or various hardware keys — with a maximum of three active methods — they can reduce the chance that additional people have access, and prevent duplication of the private keys. This isn't possible with a QR code to scan for TOTP (you can scan it on multiple devices, or print it out, or have a computer with malware doing this).
Initial authentication is done using a passport, or in-person at a local government office for people without one (or without access to a phone capable of reading the passport's chip).
(This is just my general understanding of the system.)
Most apps I use (ie. banking) are bypassed simply by adding them to a hide-list.
The only apps that require a bit more work / expertise are apps that require integrity checks (ie. google wallet).
"A bit more work" but only for now... There is a loophole (spoofing the device fingerprint with the one of an old model where non-hardware attestation is still accepted) but Google is starting to ban those models and it's only a matter of time until they're all banned.