Nitrokey 3 Secure Chip

The Nitrokey 3 does not yet use its secure chip. Instead the keys are stored encryped on flash memory.
Did I get that correctly?

In a Nitrokey blog post I’ve read something like “this doesn’t smaller the security”.

So now my question is:

  • Why doesn’t it smaller security?
  • Why even have a secure chip if it doesn’t improve security?

Could you clarify this for an absolute noob?
Thanks in advance!

Don’t know who to approach the noob, but this has been discussed here a bit:

but also there is some interesting news: