This seems misguided - it is watering down a decent system simply to appease and attract people too cheap to buy tokens; if 2fa is something that is so important to you, and you need it, just buy the damn tokens! A vague comparison, would be me selling pre-printed 'random' passwords on paper because a user generating their own was 'too difficult' IMHO, soft token u2f is only useful for testing, development, and perso…
What is the attack scenario you feel a hardware token protects you against that a software token will not (for the use cases U2F was designed for)? Sure, hardware tokens prevent malware from actually lifting your private keys. But, to steal your software private keys you likely need malicious code running on your computer. And, once an attacker has that, it is largely game over for all intents and purposes anyway. Th…
My bank, for example, has both your password entry and the private keys on the token. All you ever enter onto a computer or smartphone is the one time password, even when using their smartphone app.
I like my bank.