> we, as a product company The most important thing any security company needs to realize is that their primary product is their reputation, not the physical or digital goods that they produce. "We, as a product company" is totally the wrong attitude. There's really no question about it, every ounce of closed source software/hardware in a security offering is something the customer should be concerned about it. From…
Hmm. I think there's considerable limits on how true this is. I would argue Yubikey's current security is more than good enough for almost everyone.
As mentioned in your edit, there's not a lot Yubico can do about the hardware restrictions. Given these restrictions, a common way companies in this industry assure users of the security of their device is FIPS 140-2 certifications, which range from levels 1 to 4.
Level 4-certified devices are extremely expensive, and the market for them is tiny, which seems to indicate that there's a definite limit on the amount people and organisations are prepared to pay to ensure security.