> someone's unencrypted hard drive from 5 years ago is more likely to have a key than password.

Even 5+ years ago, hardware-backed SSH keys were a thing (Yubikey). The only difference today is that its 100% easier to do keys properly because of the widespread commoditisation of secure enclaves in desktops and smartphones to support FIDO, its basically free of charge now because you're not obliged to buy a Yubikey.