"better" is a strange word to use when discussing security, everyone's situation is different™. You're making a set of trade-offs between availability (backups) and confidentiality (only using hardware tokens which are tamper evident) which absolutely do not generalize to every case.
I'm saying if your hardware token is plugged into a machine that you connect to with USB-over-IP your hardware token is basically security theater and your actual security is whatever secret you use to protect the machine the token is plugged into. So if you're worried about availability but want something like 2fa software TOTP secrets make a better tradeoff.
