I have helped literally hundreds of people setup Yubikeys across several companies.
Your take is just not my experience at all. Tapping a blinking light it is much easier than fussing with a 2FA app and works when someone's phone is dead. Yubikeys in particular are near indestructible. They even work after you soak them in acetone overnight and melt the plastic off. I tried.
When it says "plug in your device" you plug it in. When it says tap you tap.
Also the mugger comment is not part of a typical threat profile. Yubikeys and similar devices are meant to protect you from remote attackers which is the class of attack 99.9999% of people need to defend against.
If a mugger points a gun at you, no form of 2FA is going to save you.
Also my Yubikey has a pin enabled and fingerprint enabled WebAuthn devices exist. I have several. If you are carrying things so valuable you are worried about being mugged, you can probably afford a higher end model with a fingerprint or pin.
Edit: yes I know random muggings happen, but a hit and run mugger that knows what a Yubikey is and already has your password is a hiiiiighly targeted attack. -That- pretty much never happens unless you are walking around with a $1,000,000 in Bitcoin in which case it has happened a total of 5 times that are public.