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
It looks like you didn't understand how to use the hardware wallet to sign a transaction. If you are using a wallet that has your seed stored, then you don't need the hardware wallet to sign because it won't ask for hardware wallet to sign a transaction.
You need a watch-only wallet to create an unsigned transaction, not the wallet that still has the seed stored, because the hardware wallet is the one that will sign the transaction.