If hardware wallets became unusable, would confidence in Bitcoin weaken, or would people adapt with new storage methods? Is this even a possibility ?
To make it more simpler for you, let me say it in a lame man language other from what the first reply put it.
Bitcoin are not stored on the wallet we use, they are on the blockchain, our kind of wallet only helps us have access to the locking and unlocking keys to connect to the blockchain where our bitcoin is stored, so in case you have a faulty hardware wallet, just import your wallet on another device and that's all, once you have the necessary unblocking keys to it on blockchain.