Maybe that works in the some countries, but among the 3-4 mainstream banks in my country, making that threat when you are anything less than an unusually high earner by local standards (and perhaps a customer of ancillary investment services) is just going to be met with "Fine, we'll close it then." You might be overestimating just how much banks need any one average person's custom. Also, by local cultural standards, making such threats to a business for the sake of obtaining better customer service is over-the-top Karen behavior, so you have already lost when you do that.
Why wouldn't you close your account if they don't provide what you want? It's not an empty threat, just a fact.
Because you won't get what you want at any other bank, either. Hardware tokens are viewed as superseded and phased out everywhere.
I'd close my account anyway. If other banks are no better nor worse, then no reason to stay with the one you have.
But there should always be at least one bank which can give you what you want, whatever that is. There are dozens to choose between if you're banking in USD or EUR.
"There are dozens to choose between if you're banking in USD or EUR." No, in several EU countries there are just a literal handful after successive mergers.