It seems like the benefits are having the device lock/wipe itself after a set amount of attempts in case of a brute force attack and not having to run software to decrypt the drive on the device you plug it into.
I included a picture of the IronKey Keypad 200 but that's just because it's the first result that came up when I was looking for an example. There seem to be a few other manufacturers and models out there and they probably have different features.
I am curious what do you think of them? Do you think they are useful? Do you find it more a novelty?
It was an ExplainingComputers video titled Very Useful Small Computing Things that made me think of them.
So if that's correct, then a single company breaking the IronKey isn't, by itself, that big of a deal unless and until the knowledge bcomes fairly widely available.
I think it's a factor to consider but it depends on your threat model. A few people have linked an article about a Bitcoin wallet that was on one of these drives that was cracked. I imagine replicating the process would be difficult but with a big enough group going after you who knows?
The extra layers of security always helps though.
I think that if your threat model is the NSA, then them having physical control over the drive--and probably you in a black site--is probably going to be the end of the road for you.