Why wasn't (isn't) this more widely used? It was clearly more effective than a cdkey. I know there is cost associated with the hardware, but surely the costumer can cough 15 more dollars. The only reason I can think of is wanting as wide adoption before max revenue as possible. But then, this has never been too popular, not even for games!
Dongles were extremely widely used in the 1990s and early 2000s; for anything more advanced than consumer software you'd almost expect them? Almost every DAW, video editor, high-end compiler, engineering/CAD package, or 3D suite used them, certainly. I think sometime in the late 1990s FlexLM switched from dongles to "hardware identifiers" that were easily spoofed; honestly I don't think this was a terrible idea since…
I will check if I can find an image of it.
EDIT: here is an old listing of it: https://www.ebay.com/itm/187748130737
Sadly the lid isn't open so you can't see what modules are installed.