"... she did say the company is experimenting with hardware-based tokens as well as a Motorola-created system that authenticates users by having them touch a device to something embedded, or held, in their own clothing. 'A hacker can't steal that from you,' she said."

Something embedded in their clothes? Users have to wear the same jacket or dress every day? Anyone, not just a "hacker" can steal your jacket if you take it off. If it relies on something physical, it's easier for anyone to steal. You still need a password/passphrase.