Can't say I agree with this take. Sure, something hardware bound is more secure under certain threat models. For others it's largely irrelevant. There are also drawbacks, such as not being able to back it up. That might or might not matter. "Just" get a second hardware token, register that as well, and store it somewhere safe won't always be a realistic (or perhaps desirable) option for everyone in every scenario. It certainly reduces your flexibility.
If a factor is "something you own", it is by design that if you lose and no longer own it then you can't pass that check.