There is no other way. Unfortunately, there has been a serious lack of r&d in this area, so we have a lot of catching up to do. I believe it can be made to work, though, because this is not entirely a new idea for most people: they already understand physical keys and the problems associated with losing them.
Moving to digital (public-)keys isn't a perfect match, but it is entirely possible to leverage the skills and experience that people already have. For example, contrary to the advice used a decade ago, Schneier recommends[1] that people write down their passwords (avoiding the memorization problem). This can provide good enough security most of the time, because people already understand how to provide security for their wallet.
Incidentally, I always liked the basic idea of the Java Ring[2]. It was basically a fancy (for the time) smart card, but the idea of storing the chip in a ring is an attempt to make security management personal, which is an idea that had potential.
[1] https://www.schneier.com/blog/archives/2005/06/write_down_yo...
[2] http://www.javaworld.com/article/2076641/learn-java/an-intro...
edit: forgot a link