lxtbell2 :
The key can be stolen or lost just like the phone. What is wrong with Google Authenticator if the phone is not stolen?
For one, and this is a BIG one:
Many, if not most, people are (at least occasionally, if not) regularly accessing the accounts in question on their smartphone these days.
So if your "Second Factor Authentication" is also on your phone...
Well, it's not really second factor at all in the first place, is it?
Even if it was theoretically secured by a pin, that has always been pretty weak, and likely not at all cryptographically secure.
Modern hardware keys are really the only way to handle 2FA anymore:
They are easily carried;
In a generally separate location (who really physically ties their wallet or keys to their smartphone anymore?... if so, they should really learn better in this day and age);
Can easily communicate wirelessly with most available smartphones and devices (even apple, as of a year ago, the one stalwart against standardization.);
Can use standard USB protocol to communicate with just about any wired device known to man;
Can not (in knowledge) be emulated, only physical control of the key can duplicate the signed response, whereas anyone with an appropriate screencap can duplicate your authenticator (or any Time-based One-Time Password algorithm [TOTP] response.)