I usually had a pretty hard time trusting any wallet that I had to download offline. For example, there was a time I used to generate paper wallets but I was very paranoid every single time no matter how safely I generated them.

Hardware wallets basically removed this fear - with Ledger, you just open up Electrum (or Ledger Live) and you generate as many accounts as you wish without having the constant "what if some stranger knows it" fear. Moreover, carrying it in your pocket is safer than carrying a wallet around, as long as you stored your Ledger seed properly. Losing your wallet means losing everything you had in it while losing a Ledger means recovering your funds when you get back home. It's not like you can insert a random code inside a software and get back your lost ID, cash, cards etc.

Being offline, you don't have the fear that a keylogger might get to unlock your software wallet and get your funds out either. Although it might not be the most secure wallet, HWs avoid the hassle and constant stress of possibly not doing something right and having all your funds flush out of your addresses. This is mostly why I love my Ledger. Think of it as a mini & handy airgapped device you can conveniently carry around in your pocket.

It's easily stolen from some people because they do not have the necessary education to know how a digital wallet or file can be safely protected from hacks and thefts. With every new generations, it'll be easier and easier to get them understand why Bitcoin is better than centralized currencies and why it's such a genius idea. After all, you should store your keys the same way you store your precious metals or other valuable stuff you have.