"Crippled" is a big word. It does everything that KeePass would do, for example; it only falls short when it comes to sharing passwords among a group or family (you can send a secret via BW Send, but you cannot have a shared store unless you pay for Premium).
Yubikey and its likes are advanced features that the overwhelming majority of regular users will never need.
"Crippled" implies a degree of everyday suffering in the "cripple", or a downgrade from a previous state of health. The advanced features in Bitwarden were never free, in fact I think some of them were eventually added to free plans too. I honestly don't even want stuff like yubikey support, and could see that as feature bloat!
I don't expect everything to be free, I'm perfectly fine with the freemium model when the set of free features is reasonable - as, in my humble opinion, is the case with Bitwarden. So I wouldn't use a word like "crippled" when it's more like "normal for regular users vs enhanced for advanced needs".
I thought that it had all the same features, just not cloud sync. As far as I know the Yubikey is used for authenticating with their sync server. It doesn't actually help with the encryption
Bitwarden's free plan does have end-to-end encrypted cloud sync with no device limit. The free plan lacks TOTP support, but Bitwarden's $10/year plan does include TOTP support and is cheaper than 1Password's $35.88/year plan. Bitwarden is also open source, while 1Password is not.
I'm referring to Bitwarden Authenticator, which stores TOTP secrets and displays 6-digit codes like Google Authenticator does.[1] This feature requires a Bitwarden Premium account, with the $10/year plan being the cheapest option.[2] (Self-hosting through Vaultwarden is another option.[3])
This is separate from having TOTP 2FA on the Bitwarden account itself, which is available on the free plan.[4]
Yubikey and its likes are advanced features that the overwhelming majority of regular users will never need.