(1) Won't an SSH key with a passphrase solve this? Whoever picks up the lost USB stick won't be able to guess a good passphrase.
(2) It seems like a USB key (like Yubikey) combined with a fair amount os USB-attached storage could be a viable product for some applications! The storage could even be encrypted for (some) extra security.
> (1) Won't an SSH key with a passphrase solve this? Whoever picks up the lost USB stick won't be able to guess a good passphrase.
Yes but in that case your passphrase is your only security.
Keeping your private key private, gives you 2 security levels: you must have the key and know the passphrase.
(2) It seems like a USB key (like Yubikey) combined with a fair amount os USB-attached storage could be a viable product for some applications! The storage could even be encrypted for (some) extra security.