Personally, I liked the low-tech solution of code cards + password (2FA), used by e.g. Denmark as digital ID, now discontinued. I am aware that it is imperfect, and if you are not careful with MITM attacks you can get in trouble, but it was a good compromise to avoid the temptation to track citizens. Something like a hardware TAN generator, but with protection against MITM, would be an ideal compromise. The current trend of moving towards mobile apps that require hardware attestation is worrying.
Definitely, requiring the entire smartphone to be "trusted" is way too much.
Small external signers with a display and confirmation button are a nice compromise (and also largely solve MITM!), since I don't mind an external device being under somebody else's administrative control as long as I can run what I want on my smartphone or computer.
But people don't want to carry two things... Hopefully we can at least have both as alternatives going forward.