At least my password won't leak as often with yubikey, but the attacker can still hack my shell to execute fake sudo. Even if I type /bin/sudo explicitly, there is ptrace, LD_PRELOAD or just replacing the entire bash binary.
In practice yubikey sudo keeps you much safer today, as almost nobody uses it and malware won't be prepared for it
In practice yubikey sudo keeps you much safer today, as almost nobody uses it and malware won't be prepared for it