You end up with bad passwords anyway (like Fuck Off 45). Or you end up with everyone using the same account, or post-it notes with passwords, or notebooks with passwords, or an email draft with passwords.
I've seen smartcards have the best impact. Yeah sure they can be swiped or forged, but compared to the real, effective security of passwords, they're much better. You also can't lock yourself out of a smartcard system. You can forget your card at home, but it's easy to just reissue a new card and invalidate the old one (throw it away when you get home, it's just a hunk of plastic now).
I've seen smartcards have the best impact. Yeah sure they can be swiped or forged, but compared to the real, effective security of passwords, they're much better. You also can't lock yourself out of a smartcard system. You can forget your card at home, but it's easy to just reissue a new card and invalidate the old one (throw it away when you get home, it's just a hunk of plastic now).