Personally, I'm a fan of the physical token. I got the original from FFXI and I just replaced it last year (so I think it was 12-13 years old?). I keep it on a badge pull on my monitor. My PC isn't going anywhere... but my phone is. Maybe it is charging (and not near me). Maybe I left it in the car. Maybe its somewhere other than where I play FFXIV. The headache of the software authenticator if you forgot to take it off your account before you factory reset or otherwise lose/sell/break your phone... the $12 token is a "no-brainer" for many (not all) FFXIV players.

However, if the software authentication is someone's preferred method, have at it.