Earlier quoted context omitted.
It also has a few downsides: Adding a new key requires re-encrypting every entry. Touching your yubikey hundreds of times gets old, fast.
If you are using GPG keys and have the master key backed up somewhere you can fairly easily use that on an offline machine to add the new key to the full batch of password files without needing to perform a million button presses.
Could also disable the touch to decrypt feature while you performed the rekey?