Not true. The solution I described would survive a local machine compromise (the GPG key is maintained on the Yubikey), the 1Password based solution won’t. How could generic malware steal secrets that are not even on the device? Furthermore, pass encrypts each password separately (I.e GPG generates a new symmetric key for each password). In case of 1password, if the master password is compromised, it’s game over.
Also, I was a long time 1password user, switched to my current setup after 1Password moved to the rent-seeking subscription business model with 1Password 7.
In terms of convenience, it’s even more convenient than using 1Password. The only minor hitch is having to key in the PIN for the Yubikey if I haven’t used it for a bit.