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Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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I must have been way out of it late last night. I totally missed that you were asking why people do it and not looking for recommendations. Sorry for the spammy nonsense response to your OP.
To the latter question, I've seen devices that do OTP and FIDO in addition to basically storing arbitrary strings (e.g. your cc number).
I get harassment scolding me for using Lemmy to advertise when I mention any of the products by name, despite having no affiliation with any of them outside of being a user, but they're not hard to find if you look.
No worries, thanks for clarifying.