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That limit is only for a certain Yubikey model, not for all hardware-based fido2 authenticators.

> upload their keychains to ms/apple/etc clouds where they can be requested by any gov under the sun for x reasons.

If a HSM module (TPM, Apple/Android Secure Enclave) is used the private key is impossible to extract (and upload to a cloud) anyways

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> That limit is only for a certain Yubikey model, not for all hardware-based fido2 authenticators.

Do you know who offers more? I deliberately chose Yubikey as example as their limit was the highest. Others like Nitrokey etc. support even less.

Even if there are keys that offer more, the number 1 brand in hardware keys having that limit is not a good look if the idea is to transfer 'everything' to it.

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