Earlier quoted context omitted.
Those are considered deprecated by now. The most important issue with those devices is that they're not secure against phishing. If you accidentally input your credentials and PIN code in a phishing site, it's game over. With FIDO tokens, this is impossible - authentication is challenge-response based and tied to the encrypted channel. Your device contains a private key which is used to authenticate. This requires tw…
What makes it impossible for a phishing site to mimic the challenge?
A further feature is that you can make the ssl tunnel id part of this as well, that makes it even better.
This is how both UAF and U2F work.