I’ve ended up the same place as you. I had previously set up my gpg key on a Yubikey and even used that gpg key to handle ssh authentication. Then at some point it just stopped working, maybe the hardware on my key broke. 2FA still works though.

In any case I figured storing an SSH key in 1Password and using the integrated SSH socket server with my ssh client and git was pretty nice and secure enough. The fact the private key never leaves the 1Password vault unencrypted and is synced between my devices is pretty neat. From a security standpoint it is indeed a step down from having my key on a physical key device, but the hassle of setting up a new Yubikey was not quite worth it.

I’m sure 1Password is not much better than having a passphrase-protected key on disk. But it’s a lot more convenient.