This was true, and you may still need to have it to create the online account, but the security dongle is no longer needed for routine access.
The new World Elite MasterCard is $395, and the fee is not waived for Premier account holders. This is a me too product designed to prevent Chase and Citi from poaching HSBC's deposit clients. HSBC (USA) does not appear to be interested in credit card only relationships.
I got an offer in the post which waives the 395 dollars for first two years.