I think people keep the wallets with them. Only the 24 word seed key should be kept in a safe or a deposit box. I'm thinking I would probably encrypt it and then put it somewhere safe, then burn the paper with the list.
You can safely lose the physical wallet, because you can always buy another one and use the same seed key to get your wallet back. Interesting stuff. :)
What do you need the hardware wallet for since you can generate all the keys from the seed?
How easily can you access the funds in the wallet?
The hardware wallet is for making easy payments and creating new crypto addresses other people can pay to. You can use one with a computer, or even an android or an iphone using a USB cable.
All transactions require using a pin number you have pre-programmed onto the unit. Also, I hear on some devices it is possible to add a secondary password for more security, or even a hidden wallet.
Interesting. So these features make it worth your while to get one. Maybe I will follow suit one day. :)