[nemo1618]

The point is that your keys never reside on a general-purpose, internet-connected computer. It greatly reduces the attack surface.

As for SPoF -- hardware wallets are initialized with a seed phrase. You can make as many copies of the seed phrase as you like. You don't even need to load them onto a new device if yours is lost or stolen; the phrase alone is sufficient to re-derive the keys on any computer (although you will sacrifice some security if you decide to recover that way).