I don't see how you're being unduly paranoid. It's a hardware device and you don't really know what's inside of it. Unless you open up the hardware and look into it (which 99% of the users who claim its trustworthy never do), you are trusting the manufacturer that built this thing.

Worse, you connect this hardware to your online computer via USB! The risks of USB are widely known and have been discussed on this Armory forum before. Again, they say this is fine because the thing inside the hardware that stores the private key is supposed to be isolated. But again, unless you open the hardware (which nobody does in practice), you are trusting the manufacturer.

I still can't understand why people trust this thing. I just don't get it. What am I missing?