Hardware wallet is not panacea, it still require proper using.
Absolutely, but the same can be said of any wallet or any security set up. This is no way to store your bitcoin which is entirely immune to user error or stupidity.
While I agree with you that passphrase+seed phrase combination strengthens security in case of hacker's attack, I can't agree this method is able to protect from any wrench attacks.
It is more or less the
only method that can offer at least some protection from a $5 wrench attack. Any wallet protected by login details, a password, PIN, finger print, etc., any seed which has been hidden or split in to multiple parts, any seed which has been encrypted, and so on, all have a single piece of information required to access them - the password, the location, the encryption key, etc. Only by using a passphrase (and keeping the addresses behind it secret) can you have any form of plausible deniability. An attacker who finds your wallet can $5 wrench you until you reveal the password/PIN, but has no way of knowing that you have more coins hidden behind an additional passphrase.