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On the Trezor One it has to be entered on the PC, on the Trezor Model T you can choose.
I understand that decision. Typing the passphrase on the hw-wallet with 2 buttons would take ages and you would be more likely to make an error. Remember you have to do it twice for a new one.
The passphrase isn’t as crucial as the seed – it is completely worthless without the seed. It is very unlikely for a normal user to become victim of a combined attack phyiscally and digitally at the same time.