[loup-vaillant]

You're correct, a malicious browser can wreck havoc in the user's account. The advantage of a hardware token is that it can limit the damage: if log in and important operations require the hardware token, we can make sure that a compromised browser cannot exfiltrate the user's long term secrets, and cannot permanently hijack the account. Done well enough, the account would only temporarily be compromised (which I reckon is still bad), and the user can easily reclaim control by turning off their computer and log in with another.

As for why I care about compromised browsers, well… I hear malware is still a thing. I'm relatively safe, but I'm one bad vulnerability or bad decision away from letting a Trojan in. So I quite like the idea of protecting my most important long term secret with something that's immune to that. Maybe I'll even get there.

As for the service, most of the time their own stakes are pretty low. They ought to offer good security options, but I'm not sure it's their place to mandate stuff like 2FA.