Thanks for explaining. I take it that means the master password and keys will have to change to make the account compatible without compromising or resetting the device. It should also mean it is possible to store additional accounts by changing the address path similar to how separate xlm accounts are stored (change last 0).
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There will be options in the desktop wallet apps to only change certain public keys, so that an account is not tied completely to the hardware wallet.
For example a curation bot may need to store plain text private posting key on a server. They have the option to only change their active and owner public keys, so that funds may only be accessed through the hardware wallet, but able to comment/vote with the posting key like how we're doing it now.
An account may also have more than one public key associated with a particular authority. For example there may be 2 public keys that is associated with posting authority, in which transactions that only require posting authority can be signed with the hardware wallet or another private key.