Before MFA was mandated on every service this was an easy problem to solve. Now when you lose your phone while out and about you lose your ability to log in to even Dave's Speed Cow Milker's Enthusiast Forum unless you're at home with another computer already logged in to various things.
The QR code that you use to transfer TOTP secrets to a new phone, is static. It never changes (unless you add a new service) and it requires no verification.
Yubikeys could be cheaper. In addition to the two I have, I bought two more to store offsite with friends and family for redundancy (with access to my password manager + important email accounts).
With a usb stick form factor I would think Yubikey would be doing more to convince consumers a yubikey will not fail like a usb stick (randomly and from disuse).
