Earlier quoted context omitted.
It depends what your threat model looks like. For example if you have good physical security and limit passwordless login to physically secure machines via AD computer groups, this may protect you from remote attackers. If however organizations allow the use of this over the internet from "any" endpoint then this completely replaces a password 1:1 and theft/loss of the Yubikey could be a major problem. This could als…
Unless you're asserting that the hardware token is just as crackable as a password, it's not a 1:1 replacement. The problem with passwords is that you have 10,000 users and more than one of them has a bad password. The problem with hardware tokens is that I've stolen your token. So passwords are vulnerable to bots, while the hardware token requires a human to find/steal something and connect it with a specific accoun…
That's completely outside the scope of what I was describing. You've taken my words out of context.