But you can click in the arrows button at the bottom-right of the mnemonic passphrase (then you can see "Click to use hardware wallet seed instead", see picture above ) and then the seed will only be stored in the btchip. You have to configure your Btchip or empty it if was previously used, (be carefull if already have another seed in this btchip you will lose all)
Then you can login with the btchip, if you lose the btchip you will lose all of course, for me it's easier to lose the btchip with my car keys than to lose a seed phase written in a paper and stored properly.
Nobody explain it but I think this works that way, if I'm wrong please
Regards