So as I understand it, my seed is my extreme backup if all else fails i can access my btc again anywhere anytime with my seed words. Then my hardware usb device is a functioning device for signing transactions, i can use it to send money from my encrypted wallet that has my seed stored in it
That's right. And that's why it is advisable to have a hardware wallet because without that, no signing or confirmation for the transaction to proceed.
Unless someone has got your seed phrases, they don't need to have any hardware wallet to access them and can still steal your funds.
So, be careful about how you keep your seeds because it's the most important thing that you have for your funds.