You can add much checks to the login as you want and still it adds very little to the overall security. You allways (especally if you got hardware access) work around them. If you encrypt the users data with the key you enter there - that actually adds more overall security.
Dino. I agree with you. Two factor authentication using hard ware tokens is not a one size fits all solution to computer security. However, I do believe that it dramatically improves security when it comes to local login access.
Encrypting files and partitions is also a good way improve security and I don't think one of them necessarily has to rule out the other one.