The original IronKey (later sold to Kingston) seems to have be cracked. A team / company called Unciphered managed to break a IronKey in a attempt to offer such a decryption to Stefan Thomas who had 7002 bitcoin on this key. This was then worth then 235 million dollar (now >500 million), which is of course a VERY strong motivation. [1]
The Lenovo case of course seems not to be bad implemented security but no security at all, especially if they advertise with encryption, which I found on a Asian Lenovo website where still there are still some specs of the key [2]. A good method if you want to damage your reputation.
[1] https://www.wired.com/story/unciphered-ironkey-password-crac...
For key entry you really want mutual TOTP or a separate ignition key, like a yubikey, that you insert into the drive.
They work well in high security environments because you can allowlist the vendor and product id of only these hard drives, and you don't have to set up procedures where people HAVE to encrypt their drives before use.
So cost-wise it makes sense.
But for personal use? BitLocker / VeraCrypt all the way.
And MS has handed those keys over to law enforcement before.
some highly secure environments have connections comming from networks that sport windows. usually they will come in via something like a data diode so whatever comes in can physically not come out because its so risky to allow even such a network to connect to yours....
perceptions of what is highly secure can vary a lot depending on what a person has encountered. if you ever come across a place that is really secure u'll immediately know the difference.
ive never seen a highly secure corporate network and have seen close up what security is implemented in fortune100 etc. its a doozey. they just pay vendors with big retainers for IR etc. to be compliant and insured. that is not security. (and they spend millions on that which is funny as hell)
You could make your own BitLocker conforming to your requirements without relying on or trusting any cloud or corporate entity.
If implemented correctly, "hardware" encryption can be more secure than "free software cryptography". The most obvious benefit is protection against brute-attacks, which you can't meaningfully implement with software. Not to mention added protection of biometric authentication as a second factor, compared to typing a password into a possibly untrusted machine.
For example, you need to print something; take some data from an oscilloscope or other instrument.
Your alternatives are to connect those devices to your network or some devices run Windows you can alt-tab out of and install your own software. Given risks and complexity of those, a hardware encrypted USB stick is the least bad.
The traditional free software approach to cryptography is "derive the key from a passphrase; require the user to make the passphrase strong; if the passphrase is weak, put the onus on the user."
This works well for HNers, but is terrible for normies. What normal users want is a locked down chip (potentially running open source firmware!), which securely stores something like an AES key protected by a 6-digit pin, which gets erased after 10 unsuccessful attempts and cannot be cloned. This is how TPMs, Apple's secure enclaves and bank and SIM cards work. This kind of design did more to bring full-disk encryption to end users than any free software ever did.