im not sure how this would be done if the seed of the yubi key will have to be stored on the blockchain.. that means it has to be transparent somehow before you login.. has anyone done anything like this yet?
Normal Yubi keys have 1 information slot available to store a "OTP" one time password
A yubi neo also has a second slot that can be programmed for a PGP key.
So in my suggestion the nxt wallet key passphrase could maybe be put in the OTP slot, and then maybe for shits and giggles NXT could also support and use the PGP key as well for encrypting messages on NXT system.
As a user I want to use a yubi for the multisig, for some reason having that key on my person or in a safe place seems better then just using my phone (which i frequently lose and destroy) for multisig