So hacking a hardware wallet is theft, but stealing a paper wallet isn't? Why?
I just meant that it is easy to compromise a paper wallet if compared to a hardware wallet. Seeing a paper wallet is like seeing money, unlike hardware wallet that require extra work. But you are right, it is good to go for the best option that would get back the coins to the real owner.
Just passphrase are not stored on hardware wallet. I thought it is not new to you, a physical attack that can reveal Trezor seed phrase. Even on wallets that have secure element, the seed phrase are stored on secure element, but hard to compromised like I posted before.