This isn’t strictly a privacy question as a security one, so I’m asking this in the context of individuals, not organizations.
I currently use OTP 2FA everywhere I can, though some services I use support hardware security keys like the Yubikey. Getting a hardware key may be slightly more convenient since I wouldn’t need to type anything in but could just press a button, but there’s added risk with losing the key (I can easily backup OTP configs).
Do any of you use hardware security keys? If so, do you have a good argument in favor or against specific keys? (e.g. Yubikey, Nitrokey, etc)
Manually keying in the pin is only needed when plugging in the device. Challenges for TOTP, FIDO2, etc. are a configuration option, and are only 3 digits if enabled (press any button if disabled).
As for “excessive amount of security”, security as an absolute measure isn’t a great way to think about it. Use case and threat model are more apt.
For use case, I’ll point out it’s also a PGP and SSH device, where there is no third party server applying the first factor (something you know) and needs to apply both factors on device.
For threat model, I’ll give the example of an activist who is arrested. If their e-mail provider is in the country, they can compel the provider to give them access, allowing them to reset passwords on other more secure services hosted outside the country. The police now have the second factor (something you have), but can’t use it because it’s locked.